Vol. 539 No. 1
75 Mrs. Barnes asked the Minister for Agriculture, Food and Rural Development the date the early farm retirement scheme first came into operation here; the provisions applied on that date for the calculation of the pension awarded to eligible persons; the changes which have been made since then in the calculation of the pension for eligible persons; and the date of application of each such change. [17933/01]
The scheme of early retirement from farming commenced on 7 January 1994. The scheme provided for the payment of an annual pension at a basic rate of 4,000 ECU plus 250 ECU per hectare of transferred or leased lands up to a maximum of 24 hectares. In 1996, the revaluation of the Irish pound against the ECU resulted in an increase of some 2.6%. The rate came down again by some 5.05% on 1 January 1999 when the euro was introduced.
Since the introduction of the scheme, the maximum rates of payment have been as follows: 10,000 ECU per annum, £9,764.26, up to and including 31 December 1995; 10,000 ECU per annum, £10,016.26, from 1 January 1996 to 31 December 1998; 12,075 per annum, £9,509.83, from 1 January 1999 to date.
The reduction from 1 January 1999 is permanent, but 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. Compensation was set at 75% of the loss incurred in respect of reductions in payments during 2000 and this was paid in March 2001. The compensation scheme provides for a third payment in respect of reductions in payments during 2001. The rate of this compensation has yet to be determined and approval for this payment will be sought from the European Commission in due course.
The new scheme of early retirement from farming, which commenced on 27 November 2000, was introduced under Council Regulation (EC) 1257/1999. This scheme provides for payment of an annual pension at a basic rate of 5,403, IR£4,255.21, and 338, IR£266.20, per hectare of transferred or leased lands up to a maximum of 24 hectares. The maximum pension payable is 13,515, IR£10,644.
