Dáil Éireann debate -
Tuesday, 29 May 2001

Vol. 537 No. 2

Written Answers. - Farm Retirement Scheme.

Denis Naughten

Question:

173 Mr. Naughten asked the Minister for Agriculture, Food and Rural Development if, further to Parliamentary Question No. 147 of 16 May 2001, he will explain the reason a training allowance which is paid to cover expenses for an individual to attend an educational course is considered as income; if his attention has been drawn to the fact that the Department of Education and Science does not consider such an allowance as income; and if he will make a statement on the matter. [15996/01]

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

For the purposes of the early retirement scheme, the definition of non-farm income is designed to give every opportunity to potential transferees in the scheme to meet the viability criteria. The VTOS allowance is paid to an unemployed person who wishes to avail of further educational opportunities in lieu of their unemployment benefit or assistance. It is understood that payments may be made by either the Department of Social, Community and Family Affairs or by the VEC. It is not considered unreasonable, in the circumstances, that such payments should be regarded as income for the purposes of the early retirement scheme in the same way as other social welfare payments. It is understood that nearly 70% of VTOS participants are under the age of 40 and, while there is no breakdown for the numbers over that age, only a small proportion of participants are aged 55 years or over. The inclusion of such payments under the definition of non-farm income is more likely, therefore, to benefit young farmers wishing to participate as transferees under the scheme than to exclude older farmers wishing to retire.

Denis Naughten

Question:

174 Mr. Naughten asked the Minister for Agriculture, Food and Rural Development if, further to Parliamentary Question No. 148 of 16 May 2001, he will explain the reason the qualified adult allowance and child dependent allowance under the unemployment benefit scheme are considered as income; and if he will make a statement on the matter. [15997/01]

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

The definition of non-farm income under the current early retirement scheme includes unemployment benefit and other social welfare benefits and assistance. A feature of such payments is allowances for adult and child dependants. As neither the adult nor the child has independent entitlement to these payments, it is the total amount of benefit or assistance payable which is reckonable as income. The primary purpose of regarding these allowances as non-farm income is to enable potential transferees under the scheme, who may not be in remunerative employment or may be temporarily unemployed, to meet the minimum viability criteria set down.

Denis Naughten

Question:

175 Mr. Naughten asked the Minister for Agriculture, Food and Rural Development if he will outline all State allowances which are not considered by the relevant Departments which administer the relevant schemes as income but are by his Department for the purposes of the early retirement (ERS2) scheme; if he consulted with the relevant Department prior to defining such allowances as income; if he will review this scheme; and his views on whether the scheme encourages the uptake by small farmers. [15998/01]

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

The definition of non-farm income under the current early retirement scheme is included at section 3.19 of the scheme document. The definition is very broad and covers income from employment, self-employment, investment income, payments from the Department of Social, Community and Family Affairs and income from FÁS courses. While income from certain departmental schemes or services are specifically mentioned, this is for information purposes only and should not be construed as excluding all other State payments. During discussions with the farm organisations on the outline of the scheme, it was agreed that farm assist payments, for instance, would be categorised as non-farm income. This was to improve the prospects of small farmers wishing to participate as transferees under the scheme in meeting the viability criteria set down in the scheme.

Any redefinition of non-farm income would have to apply to both transferors and transferees. While some potential transferors should then become eligible, some younger farmers would be deprived of a chance to remain in farming where they could contribute to maintaining the fabric and viability of rural communities.

Denis Naughten

Question:

176 Mr. Naughten asked the Minister for Agriculture, Food and Rural Development if participants in FÁS training schemes are eligible for the early retirement - ERS2 - scheme; the background to rule 3.19 of the scheme; and if he will make a statement on the matter. [15999/01]

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

Section 3.19 of the scheme document for the current early retirement scheme defines non-farm income. The definition is very broad and covers income from employment, self-employment, investment income, payments from the Department of Social, Community and Family Affairs and income from FÁS courses. The reason for the inclusion of FÁS community employment scheme payments is to enable potential transferees who may not be in remunerative employment, or may be engaged in training courses with a view to improving their employment prospects, to achieve the minimum level of income that determines viability. It is intended, therefore, to make the scheme more widely available by increasing the number of potential transferees.