Johnny Brady
Question:30 Mr. J. Brady asked the Minister for Agriculture and Food the implications for the early retirement scheme when Agenda 2000 is implemented; and if he will make a statement on the matter. [13626/99]
Other Questions. - Agenda 2000.
The rural development regulation that was formally adopted by the Agriculture Council on 17 May last as part of the Agenda 2000 agreement provides for continued support for early retirement from farming. Under the new regulation, the provisions of which cannot apply before 1 January 2000, applications may be accepted from part-time farmers and the enlargement requirement will be replaced by a provision linked to the improved viability of the holding transferred. The new scheme also provides for possible changes in relation to the level and duration of pension payments. Detailed rules for the implementation of the regulation have yet to be agreed.
The new early retirement scheme to apply in Ireland will form part of the rural development plan which my Department must submit to the European Commission within six months of adoption of the Council regulation. The Commission will approve such a plan within six months of submission.
I thank the Minister of State. Will the 50:50 rule, whereby a part-time farmer had to earn more than 50 per cent of his income from farming, be relaxed under the new Agenda 2000 negotiations? It is very important for the pension to be increased in line with inflation. I welcome the removal of the enlargement clause.
The Deputy must ask a question.
Yes, that has been changed to allow for the inclusion of part-time farmers. It will help to address many of the effects, particularly farm size and the age profile of farmers. That has been very successful. In the initial stages we thought 7,000 farmers would join by 1998 but, in fact, 8,800 joined. There is room for many more part-time farmers to join under the new regulations, which the Minister, Deputy Walsh, negotiated successfully.
What level of income is it intended that part-time farmers will be able to earn outside farming? Will it be 40, 60 or 70 per cent? Is the duration of the pension still open for negotiation by the Minister with the European Union, to extend its lifetime to 75 years?
The pension is not being extended to 70 years. However, consideration is being given to paying the pension over a ten or 15 year period, if that suits some people.
Under the new arrangements, which will not apply until 1 January 2000, part-time farmers may be eligible to join the early retirement scheme. The enlargement of the farm by a minimum of five acres or 10 per cent required under the existing scheme will be replaced by the provision for an improved viability of holding transfer. The Department is currently examining options in that area. The Deputy will be aware that these matters are still under negotiation with the European Union. However, the principle of part-time farmers being included has been accepted. The rest is a matter for detailed negotiation.
Is the pension being extended to 70 years?
With regard to the 50:50 rule for part-time farmers, at present a farmer taking over the land under the retirement scheme must be full-time. Is it envisaged that the taking over of the land by a part-time farmer would qualify a person for the retirement pension?
This is a great country – the details of the regulations have not yet been agreed and we are looking for exemptions and options. I am not aware that is the tradition. I will have to check it and come back to the Deputy.
We are helping the Minister of State to do it right.
I appreciate that – I can see the sincerity written all over the Deputy's face.
Just like the Minister of State's.
I am sure the Minister of State is aware of the implications of the euro for the pensions paid to farmers. What advances are being made to ensure farmers are compensated in full for the consequences of the euro, which will cause a £40 drop per month in their incomes?
Is there an implicit or inbuilt cap on the pension payments? If the Department of Social, Community and Family Affairs pension increases, the farm retirement scheme pension—
There are other Deputies offering.
—decreases to ensure there is an inbuilt cap on the amounts. Is that fair? Is it part of the negotiations with the Commission to ensure that when the social welfare pension is increased it is not clawed back in the farm retirement scheme?
I am glad the Deputy has raised the issue of the increase in old age pensions. There was a massive increase this year of £9, a total increase of £15 over two years. The former Government increased it by only £7 over a similar period.
It is of no use to people if they do not get it.
It is worth noting because I know the Deputy is worried by the rate we are increasing pensions.
The Minister of State's minute is almost concluded.
The cap—
It is the taxpayers' money – one would think it was his own.
Do I sense that the Deputy begrudges the increase given to old age pensioners?
No.
I hope not, given that the Deputy comes from wealthy County Meath.
One would think the Minister of State was paying it out of his own pocket.
We must conclude and move on to Question No. 31.
I should have been allowed ask a question.
If the Deputy's colleagues had not interrupted we might have had more supplementaries.
I just want to ask—
There are no questions by way of interruption.