Vol. 535 No. 4
148 Mr. Kenny asked the Minister for Agriculture, Food and Rural Development if farm retirement pensions are index linked; if not, the reason therefor; the reason the European Commission allowed compensation at only 75% instead of 100% as was expected by claimants under the scheme; and if he will make a statement on the matter. [12843/01]
The rates of pension payable under the two schemes of early retire ment are not index linked. The rate payable under the 1994 scheme is the maximum permitted under the governing regulation, EU Council Regulation (EEC) No. 2079/92. The rate in the new scheme is set down in the Rural Development Plan 2000-2006. My Department had initially proposed annual increases in the rate of pension for the new scheme but the European Commission stated that only a fixed rate was acceptable. My Department then proposed a rate that was the average of the scale initially proposed and the Commission accepted this.
Compensation for reductions arising from the revaluation of the Irish pound on the introduction of the euro in January 1999 was set at 75% for the year 2000. This was paid to scheme participants at the end of March 2001. It was in accordance with arrangements to apply to CAP payments following the introduction of the euro which were determined by the Council of Ministers in December 1998. The council's decision was taken in accordance with the principle that in cases of currency revaluation provision should be made for temporary, degressive aid to offset the effects.
