Vol. 503 No. 7
18 Mr. Connaughton asked the Minister for Agriculture and Food when the control of farmyard pollution and dairy hygiene grants will be announced; if the rate of grant aid will be similar countrywide; if rural environmental protection scheme applicants will get priority; and the reason the three year derogation has been discontinued on the nutrient waste management plan in the REP scheme. [11014/99]
The terms of national schemes for the control of farm pollution and for the improvement of dairy hygiene standards were submitted to the European Commission for approval in February last. The terms as submitted provided for a uniform grant rate of 40 per cent throughout the country of approved costs subject to a maximum grant of £10,000 in the case of the scheme for control of farm pollution and a maximum grant of £7,000 in the case of the scheme for the improvement in dairy hygiene standards.
Earlier this month the European Commission raised queries about certain aspects of the proposed measures. The Commission indicated that a grant rate of 35 per cent is the maximum allowable in areas other than less favoured areas. My Department has responded to those queries and has agreed to the maximum 35 per cent grant rate required by EU rules in areas other than less favoured areas. The intention is that a 40 per cent grant rate would apply in the less favoured areas. My desire to have both schemes approved at the earliest opportunity was again impressed on the Commission and my officials have been in contact with the Commission to finalise any outstanding points. I hope to get an early agreement on these measures.
The proposed schemes are targeted at small to medium sized farmers and will be directed at those farmers participating in the rural environmental protection scheme or those following a nutrient management plan. Environmental requirements have been given major prominence in the measures agreed in the EU Agenda 2000 negotiations. It was, therefore, considered timely to strengthen pollution control requirements in any new measures being introduced.
With regard to the discontinuation on the three year derogation on the nutrient waste manage ment plan in the REPS scheme, the position is that the derogation in the earlier specifications allowed applicants up to three years in which to put housing, etc., in place and required that the participants ensured that there was not any pollution in the meantime. The revised REPS specifications impose the same requirements regarding pollution control but where housing is required the specifications place the responsibility on the planner to determine when these pollution control investments will be put in place.
I am very disappointed that neither the Minister nor the Government have announced the two grants. They have been talking about them for the past six to eight months and have given the impression on many occasions that they would be available in good time this year. However, half the year has gone.
A supplementary question please.
Is the Minister waiting for the European and county council elections before making an announcement? It is looking very like that. There does not appear to be any other reason.
Everybody had understood that the minimum grant aid would be 40 per cent. Surely the Minister will pay it across the country and will not subject farmers to a level lower than 40 per cent. It is a long way from the original proposal. Will he confirm his intention to ensure that farmers do not have to accept anything less than a 40 per cent grant irrespective of where they are located?
What priority will the Minister give the REPS funds? What categories of farmers can expect to start building immediately? What are the Minister's priorities? He said he would give priority to farmers involved with REPS. The three year derogation will be a huge deterrent to farmers who have a pollution problem because they will not be able to tackle it until they build a slatted house and keep the same amount of cattle over the winter as they have at present. Will the Minister comment on this?
At the end of last year £25 million was allocated by the Department of Finance to the Estimate of my Department for these on-farm investment schemes. That was necessary given that the previous Government abolished the schemes. We renewed them with the aid of that money.
The Minister has been talking about this for the past two and a half years.
Everybody knows they constitute a State aid, which must be approved by the EU. We in the Department consulted the social partners, specifically the farm representative bodies, to outline the guidelines for the scheme. Early in the year the scheme was sent to Brussels and we sought priority approval for it. A number of quer ies have been made and I hope the last query was submitted earlier this month. We responded to it immediately. I again emphasise the priority we sought for the control of farmyard pollution and the dairy hygiene schemes. I expect we will get approval in a matter of days.
Our proposal contained an across the board 40 per cent rate of grant. The EU responded by saying there should be a differential between less favoured areas and the general areas of the country and that it should be 40 per cent in the disadvantaged areas and 35 per cent in the more advantaged areas.
With regard to the nutrient derogation there was initially a three year derogation. However, EU auditors and Department inspectors found that farmers took the full three years before bothering too much about pollution control. The EU Commission, which is making the vast bulk of REPS payments, insisted that the pollution specification should be tidied up. The compromise was that the planner should decide when responsibility for pollution control investments would come into effect. That is a reasonable and fair way of proceeding. A substantial amount of money has been paid to farmers under the REPS scheme. Given that £175 million will be paid this year, it is fair and reasonable that there should be an improvement in the environment of farmyards, farm entrances and farms generally because the EU will not pay indefinitely. Next year I expect that more than £200 million per annum will be involved. Given this substantial payment for REPS, it is in the interests of farmers and the country to ensure we are giving value for it.
Will the Minister agree that the sum of £25 million made available in the last budget is the reason he is not announcing the two measures, the slatted house control of farmyard pollution and the dairy hygiene, because under the old scheme many farmers had to be paid first with the result that there is not much of that sum left? He knows that very few farmers will get grants for the remainder of the year. Despite the fact that the numbers will be very small on this occasion, there will be enough for the European elections. The Minister is playing politics with the situation.
With regard to the derogation on the REPS scheme, to go from a three year derogation to none is a remarkable quantum leap. The Minster knows the only reason farmers do not control farmyard pollution is that they are not able to provide what is necessary and that is why the grant aid is needed. That is why I ask the Minister to revert to Brussels, otherwise very few extra small farmers will be able to avail of REPS.
There is an old saying in west Cork that suspicion haunts the guilty mind. The control of farmyard pollution, the young farmer investment scheme, the young farmer installation and the dairy hygiene schemes are restored in good faith.
Let us see that happen.
Any outstanding amounts due to farmers were paid and were regarded as mature liabilities. The sum of £25 million is set aside specifically for this scheme. The Deputy knows it is a requirement that EU approval be obtained for these schemes. The biggest job any Minister has is to obtain an allocation of money from the Department of Finance to make payments under a scheme.
The Minister will not have a big job doing that this year.
Once approval has been obtained from the Department of Finance it is necessary to speed up the process.
The Minister for Finance can find money for racecourses.
Is the Deputy condemning Ballinrobe racecourse?
The Minister for Finance has not been seen in the Chamber for some time. There should be a search warrant for him.
Given that the allocation from the Department has been made, approval has been obtained and other requirements are in place we will proceed with the scheme in a matter of a week or so.
