Vol. 517 No. 3
147 Mr. Durkan asked the Minister for Agriculture, Food and Rural Development the nature, scale and scope of the regulations likely to be applied to the new farm retirement scheme; and if he will make a statement on the matter. [9962/00]
Proposals for a new scheme of early retirement from farming were submitted to the European Commission in December 1999 as part of my Department's draft rural development plan for the period 2000-06. The commission has six months from the date of submission to consider the plan.
The proposed new early retirement scheme is different in some respects from the scheme which ended on 31 December last. The former requirement to enlarge the transferred holding is replaced by a viability criterion, and the requirement that the transferor and transferee be engaged in farming as a main occupation is no longer specified. Other changes include an income ceiling for certain transferors and a limit on transferees' off-farm income, a phased reduction in the upper age limit for receipt of payments and a phased reduction in the upper age limit for transferees. New agri-environmental conditions applying to transferees are proposed. In addition, the proposals provide for an element of indexation of payments.
The terms of the scheme, including the elements outlined above, are subject to the approval of the European Commission.
148 Mr. McGrath asked the Minister for Agriculture, Food and Rural Development if a retiring farmer who has a small pension from a private pension fund should have his farm retirement pension from his Department reduced by that amount; and the reason such a reduction should be made in view of the fact the farm retirement scheme is not means tested. [9964/00]
I understand that the Deputy's question relates to a particular case and I have had the circumstances investigated.
It is the wife of the man concerned who is a participant in the early retirement scheme. She was admitted to the scheme in October 1997 under the joint management arrangement with her husband. It is a condition of the scheme that in a joint management application, a participant or a participant's spouse must apply, on reaching their 66th birthday, to the Department of Social, Community and Family Affairs for both the contributory and non-contributory old age pension. If a pension is awarded it must be offset against the farm retirement pension.
The person concerned became entitled to the contributory old age pension with effect from 19 December 1997. On confirmation of this, my Department adjusted the early retirement pension accordingly. However, the pension that he receives from the private pension fund is not deducted from the early retirement pension as the abatement rule applies only to state pensions.
