Written Answers. - Tax and Social Welfare Codes.
Michael Ferris
Question:
47
Mr. Ferris
asked the
Minister for Social, Community and Family Affairs
if he will merge the beginning of the tax and social welfare years in early April in the context of budget 2000 and the Social Welfare Bill, 2000.
[23607/99]
The rates of weekly social welfare payments announced in last December's budget came into effect in the first week in June 1999.
Last year's budget package represents the biggest ever social welfare budget allocation, amounting to more than £316 million on a full year basis. Bringing the date of these increases forward by eight weeks to the start of the tax year in early April would have cost almost £32 million.
The level of future increases to be provided and the effective dates of those increases, are matters to be decided by Government in a budgetary context having regard to the available resources and in the light of other priorities.
Jimmy Deenihan
Question:
48
Mr. Deenihan
asked the
Minister for Social, Community and Family Affairs
if he will exempt the first £2,000 of forestry premium payments for social welfare recipients, similar to participants in the REP scheme; and if he will make a statement on the matter.
[23595/99]
Jimmy Deenihan
Question:
58
Mr. Deenihan
asked the
Minister for Social, Community and Family Affairs
if he will allow a similar concession to non-contributory old age pensioners regarding the payment of forestry premium which applies to REP scheme recipients on social welfare payments; and if he will make a statement on the matter.
[23598/99]
I propose to take Questions Nos. 48 and 58 together.
Under special arrangements which I introduced in 1998, the first £2,000 of payments under the rural environment protection scheme is disregarded, with the balance being assessed at 50% for means tested social assistance purposes. In addition, any costs incurred by farmers in implementing the agri-environmental plan, as provided for under REPS, are also offset against other income from farming activities. These arrangements, which apply to farmers in receipt of unemployment assistance, pre-retirement allowance and the old age non-contributory pension, were extended to the new farm assist scheme earlier this year. The above disregards also apply to payments arising under the scheme of compensation for compliance with special areas of conservation conditions, which is operated by the Department of Arts, Heritage, Gaeltacht and the Islands. These revised arrangements provide low income farmers with a significant financial incentive to participate in the REPS and SACs schemes, thereby benefiting the environment by the improvement of the sustainability of agriculture through the preservation and enhancement of the rural environment.
The forest premium scheme is designed to replace farm income which is foregone through the change in the use of the land from ordinary farming activities to forestry. Unlike REPS and compensation payments under SACs, which compensate farmers for the material and work involved in complying with the agri-environmental plans or SAC conditions, payments under the farm forest premium scheme would equate to other forms of farm income. Accordingly, payments under the forest premium scheme are treated in the same way as other forms of farm income and are assessable for means tested social welfare purposes, that is, income from ordinary farm activities, headage payments, etc.
Following the introduction of the new farm assist scheme earlier this year, farm income, including payments under the forest premium scheme, are now assessed on a more favourable basis, that is, they are assessed at 80% rather than on a pound for pound basis. In the case of married old age non-contributory pensioners, all means, including forest premium payments, are assessed at 50%.
In the circumstances, there are no plans to extend the current disregards applying to REPS payments to payments under the forest premium scheme for means tested social welfare purposes.
