Vol. 532 No. 1
125 Mr. Kenny asked the Minister for Agriculture, Food and Rural Development the number of farmers currently claiming farm retirement pensions; if difficulties involving the valuation difference between the punt and the euro have been resolved which resulted in many farmers taking a reduction in income from £832 to £792 per month; if all retrospective payments have issued to make up the difference to those affected; and if he will make a statement on the matter. [6876/01]
A total of 9,117 participants are in receipt of pensions under the 1994 scheme of early retirement from farming. The rate of pension paid under the 1994 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 compensation 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. Arrangements for payment are being put in place following receipt of the Commission's approval and the majority of participants who are eligible for the compensation will receive it this month. 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.
