Vol. 522 No. 4
101 Mr. Ring asked the Minister for Agriculture, Food and Rural Development the steps he will take to ensure that farm incomes of the 100,000 farmers in the disadvantaged areas are protected, particularly in the changeover to the new system of disadvantaged areas payment; and if the Government will provide additional funding, if necessary, to protect these incomes. [18877/00]
The position is that a new area based compensatory allowance scheme is to be introduced with effect from 2001 as part of the outcome of the Agenda 2000 negotiations and in particular to protect the future of these payments in the context of WTO. As provided for in the Programme for Prosperity and Fairness a task force representative of my Department and the main farming bodies was established to formulate proposals for a new scheme and to ensure an orderly transition. Having considered a range of options the group recommended a scheme which would involve a payment per hectare linked to the type of livestock on the holding. The proposals envisaged a one hectare payment for each livestock unit. I announced details of the proposed scheme on 29 May last. I also announced a £120 million increase in the overall allocation of money for disadvantaged area payments for the period 2001 to 2006. At a recent meeting with officials of my Department the European Commission was not satisfied with aspects of the scheme being proposed mainly on the grounds that it did not represent a clear shift from headage related payments to area related payments. The fact that each livestock unit would attract one hectare payment was seen as continuing the link to production. The task now is to devise a scheme which is best suited to our requirements and which meets with commission approval. I have personally raised the issue with Commissioner Fischler. My officials are in continuing contact with the commission with a view to devising an alternative proposal. Further consultation is also taking place with the farming bodies.
