Vol. 505 No. 7
11 Mr. Gilmore asked the Minister for Social, Community and Family Affairs the number of applications received for the farm assist scheme; the number of applications granted; the number of persons in receipt of farm assist payments; the average amount being paid; and if he will make a statement on the matter. [14588/99]
25 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the number of new applications for the farm assist scheme received by 31 May 1999; and the proposals, if any, there are to extend that date. [14430/99]
I propose to take Questions Nos. 11 and 25 together.
The farm assist scheme was provided for in the Social Welfare Act, 1999, which, inter alia, provided the special arrangements effective from 7 April 1999 for farmers on low incomes. The scheme was originally intended to be brought into effect in June of this year, but the Government decided to advance the start-up date to 7 April to ensure that the earliest possible response was made to the difficulties experienced by the farming community.
The farm assist scheme is designed to replace the existing smallholder's dole scheme. Under that scheme, farmers may qualify for a rate of payment similar to the unemployment assistance rate and on the same basis. The farm assist scheme relaxes the means test conditions to cater for the special circumstances of farming. Normally social welfare payments based on means assessments are awarded from the date of application by a claimant. However, in this instance the Government decided to backdate to 7 April 1999 all successful applications made on or before 31 May 1999. Claims made subsequent to 31 May will be treated similarly to all other means payments and admitted from the date of application.
Many of the 6,500 smallholders have not yet replied to the Department's letter and have been written to a second time. Those who have replied are being reviewed and progressively transferred to the farm assist scheme with effect from 7 April. Those who did not reply by 29 May will be maintained on their current rate of payment until such time as they can be reviewed. These reviews will take place over coming months and the people concerned will be transferred, as appropriate, to the farm assist scheme from the date of review.
The number of new applications for farm assist from farmers not in the smallholder's scheme is now approaching 1,000. These claims are being processed as quickly as possible and all will be backdated to 7 April. The number of claims is likely to rise over time albeit the intake is at a slower rate than was first anticipated. It represents a long-term safety net for farmers and is not simply a once-off response to a critical situation.
At present, some 1,500 applications from existing and new claimants have been processed and weekly payments are averaging at almost £86. This compares with an average of £75 a week on the smallholder's scheme. However, it would be premature to draw conclusions from the data at this stage and the Department would need to have results from a greater number of claims processed under the new rules before being able to assess the impact of the new provisions and the comprehensive review of the existing stock of smallholders' claims.
Is the Minister saying that a net 500 additional people have applied for the new farm assist scheme? He said that there are 1,500 people in the scheme, 1,000 of whom transferred from the smallholder's scheme. Why does he believe the level of applications is running so low?
I cannot answer that. It was anticipated in negotiations with the farming organisations that about 13,000 farmers would apply. Some 40,000 farmers walked the streets of Dublin not so long ago for a response to the grave situation which existed then in the farming sector. Given that the weather has improved and farmers are out working on their farms, and because the nature of farming is cyclical – I often made the point about their assessment that there are good times and bad times in a year – farmers are probably not exercised about farm assist at present. However, a time will probably come later in the year when they will have to apply for it to maintain their household income. It was originally estimated that about 13,000 farmers would apply for the scheme.
Does the Minister accept the scheme is a failure because it is not an alternative to the family income supplement and because of the type of administration it entails with which many farmers are loath to become involved because of the type of questions asked? The results are abysmal because those who have been assessed have received an increase of only £11. Does the Minister accept this scheme will not solve the problems of many farm families who are in severe difficulties? Will he reconsider the position and introduce a scheme, similar to that which applies to ordinary workers, to meet the income needs of farm families?
I am surprised at the Deputy's statement, given that he is a former member – perhaps he remains a member – of the IFA. Tom Parlon, the leader of that organisation, recently stated in the Irish Farmers' Journal that the pleas of the 40,000 farmers who marched through the streets of Dublin recently had been answered by the implementation of the farm assist scheme. When the IFA met the Fianna Fáil parliamentary party approximately 12 months ago it made two demands, one of which stipulated that an income support scheme for farmers be put in place. That scheme was put in place following negotiations with the farmers.
They were seeking the payment of FIS at that stage.
The Deputy misunderstands the position. Family income supplement relates only to farmers with children, whereas the farm assist scheme also relates to single farmers, many of whom are facing extreme difficulties. The other demand made by farmers was that we should do something which had been promised but not delivered by successive Governments, namely, take action in respect of those farmers over 56 years of age who fell out of the pensions net.
Deputy Jim O'Keeffe managed to deliver that.
Deputy O'Keeffe did a lot of shouting but he did not do anything about it when his party was in Government.
