Dáil Éireann debate -
Thursday, 15 Feb 2001

Vol. 530 No. 5

Written Answers. - Grant Payments.

Michael P. Kitt

Question:

24 Mr. M. Kitt asked the Minister for Agriculture, Food and Rural Development the progress being made in the delivery of direct payments to farmers; the way in which this relates to the protocol set down in July 2000; and if he will make a statement on the matter. [3867/01]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The protocol on direct payments to farmers, agreed between my Department and the social partner farm organisations, under the Programme for Prosperity and Fairness, sets out agreed payment and delivery targets in relation to the wide range of direct payments to farmers and clarifies how the schemes are administered.

Progress on the implementation of the protocol is monitored by a monitoring and review committee, which comprises representatives of the social partner farm organisations and my Department, under an independent chairman. Feedback from the first committee meeting, held on 14 December last, indicated that the Department was well on target in meeting its commitments and in some cases exceeding them. This underlines the commitment of my Department to ensuring the best possible service to its clients.

During 2000, my Department issued some 1.6 million cheques valued at more than £797 million to farmers under the various EU headage and premium schemes, of which in excess of £490 million related to payments made under the 2000 schemes. In excess of a total of £578 million has been paid under the 2000 schemes to date. I am delighted to say that the commencement dates for both advance and balancing payments, as set down under the protocol, were on target and indeed ahead of target in some instances for the 2000 headage and premia schemes.

Since 16 October last, the earliest date allowed under EU rules for the making of payments, over £152 million has been paid under the suckler cow premium scheme, while in excess of £142 million has been paid to special beef premium applicants who have completed their retention periods. Bal ancing payments under the 2000 suckler cow premium scheme commenced one week earlier than under the 1999 scheme and balancing payments under the 2000 special beef premium scheme commenced more than two months earlier than under the 1999 scheme. Balancing payments under the new slaughter premium scheme cannot commence until the quota usage for 2000 is determined.

While no targets were agreed in the protocol in respect of the compensatory allowances, payments under the headage schemes commenced on 8 September 2000 and almost £111 million has been paid out under these schemes to date. Specific payment targets for the new area based compensatory allowance scheme are expected to be agreed with farming bodies at the next protocol review meeting.

Turning to the 2000 ewe premium scheme, payment of both first and second instalments commenced on target with all eligible applicants being paid within a few days. It is expected that the final instalment will be paid in February 2001 following publication of the regulation setting the rate.

Under the 2000 arable aid scheme, payments commenced on 16 November as agreed at EU level and, under the protocol, 96% of payments were made on that date. Indeed, 99% of all applicants were paid by 31 December 2000 and over £92 million has now been paid under this scheme. With regard to the 2000 extensification premium, full payments will be made in June 2001.

The new REPS and early retirement schemes were opened to new applications on 27 November 2000. The periods set down in the protocol for approval for payment have not elapsed in respect of any applications. As regards the new on-farm investment schemes and the installation aid scheme, the protocol applies from the commencement date of these schemes on 1 February and 15 February respectively. Arrangements are being put in place to monitor compliance with the protocol.

The foregoing indicates that a high standard of delivery has been achieved and compares more than favourably with other EU member states. I would hope that further improvement can be achieved and this can be helped in no small part by applicants responding quickly to queries and correspondence.

Phil Hogan

Question:

25 Mr. Hogan asked the Minister for Agriculture, Food and Rural Development the plans he has to compensate hill farmers for the severe income reductions which they will suffer as a consequence of the EU move to replace headage payments by area-based payments; and if he will make a statement on the matter. [4100/01]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The area-based compensatory allowances scheme agreed with the Irish Farmers Association in July 2000 and since approved by the European Commission provides for area related payments as follows: more severely handicapped – lowland – £70 per hectare up to 45 hectares; less severely handicapped – lowland – £60 per hectare up to 45 hectares; and mountain type land – £45 per hectare up to 60 hectares.

The Government has committed some £360 million additional funding for the scheme over the period 2001-06. The new arrangements involve a cost of £180 million this year representing an increase of about £60 million over the headage type scheme. It is estimated that the number of farmers qualifying for payment under the new area based scheme will rise from 90,000 under the old system to 109,000 this year. Some 81,000 farmers stand to gain about £66 million annually while 28,000 farmers will incur some losses. I have, however, negotiated a compensation package for losers under which 90% of losses will be made good this year, 80% in 2002 and 50% in 2003. Under these arrangements, the average loss this year will be about £32 rising to £64 in 2002.

My officials are carrying out a review of the scheme to see if an equitable long-term solution can be found to the problem of reduced payments particularly in mountain type areas.