Vol. 530 No. 3
117 Mr. Creed asked the Minister for Agriculture, Food and Rural Development the situation regarding compensation for persons on the scheme of early retirement from farming arising from the change from European currency units to the euro; when a decision regarding compensation for 2001 and 2002 will be made; the representations he has made to the European Commission regarding compensation for these specific years; and if he will make a statement on the matter. [3832/01]
The rate of pension paid under the previous scheme of early retirement from farming was expressed in ECUs. The revaluation of the Irish pound on the introduction of the euro in January 1999 resulted in a reduction of some 5.05% in the rate of pension. While the reduction in the rate is permanent, the Council of Ministers approved a three year scheme of compensation. During 2000, full com pensation was paid to all participants in the scheme whose payments had been reduced during 1999.
On 12 January 2001, the European Commission gave approval for payment of compensation in respect of reductions in payments during 2000. Compensation is set at 75% of the loss incurred and the total amount approved for Ireland is £2.63 million. One third of this will be funded by the EU and the remainder from the Exchequer. Arrangements for payment are being put in place following receipt of the Commission's approval. The compensation scheme provides for a third payment in respect of reductions in payments during 2001 and approval for this payment will be sought from the European Commission in due course.
