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Dáil Éireann debate -
Wednesday, 9 Oct 2002

Vol. 554 No. 5

Written Answers. - Farm Retirement Scheme.

Paul McGrath

Question:

327 Mr. P. McGrath asked the Minister for Agriculture and Food if his attention has been drawn to the fact that farmers who availed of the early retirement from farming scheme are the only group in the country who have their incomes fixed and cannot benefit from social welfare increases to which they may be entitled; and if he will make a statement on the matter. [16274/02]

In submitting its proposals for the early retirement scheme to the EU Commission, my Department had made provision for annual increases in the rate of pension. However, the Commission advised that the relevant regulations required a fixed rate be set and this is reflected in the scheme as approved.

The rate of pension payable under the 1994 early retirement scheme is the maximum provided for in the EU Council regulation under which the scheme was introduced. That regulation does not provide for indexation of payments.

It is a requirement of the EU regulations governing both the 1994 and the current schemes of early retirement from farming that the early retirement pension can be paid only as a supplement to any national retirement pension that is payable. This means that the amount of national retirement pension payable to a participant, and his or her spouse or partner in a joint management arrangement, must be deducted from the early retirement pension.

Paul McGrath

Question:

328 Mr. P. McGrath asked the Minister for Agriculture and Food the number of farmers, per county, who availed of the early retirement from farming scheme under the original and the revised scheme; and the number of applications currently being processed. [16275/02]

A total of 10,450 applications were received under the first scheme of early retirement from farming which closed to new applications at the end of 1999. To date, 1,366 applications have been received under the current scheme which commenced in November 2000. Of these 1,166 have been approved for payment; 54 have been refused; 140 are currently being processed and six were withdrawn. A significant number of the applications that were refused may yet be successful if the deficiencies identified in them are rectified.

The following is a breakdown on a county basis of applications under the two schemes:

County

1994 Scheme

2000 Scheme

Carlow

159

31

Cavan

330

53

Clare

448

68

Cork

1,978

218

Donegal

143

29

Dublin

87

3

Galway

470

86

Kerry

780

107

Kildare

176

20

Kilkenny

445

55

Laois

304

35

Leitrim

75

19

County

1994 Scheme

2000 Scheme

Limerick

752

89

Longford

142

18

Louth

120

9

Mayo

217

41

Meath

334

38

Monaghan

187

24

Offaly

275

35

Roscommon

266

39

Sligo

158

24

Tipperary

1,109

150

Waterford

284

44

Westmeath

250

26

Wexford

785

84

Wicklow

176

21

329.
Mr. P. McGrath asked the Minister for Agriculture and Food if his attention has been drawn to the fact that many farmers who availed of the early retirement from farming scheme are now not in receipt of any payment from his Department due to the fact that they are in receipt of contributory social welfare pensions, yet they are still required to fulfil conditions attaching to the farm retirement scheme; and if he will make a statement on the matter. [16276/02]

It is a requirement of the EU regulations governing both the 1994 and the current schemes of early retirement from farming that the early retirement pension can be paid only as a supplement to any national retirement pension that is payable. This means that the amount of national retirement pension payable to a participant, and to his or her spouse or partner in a joint management arrangement, must be deducted from the early retirement pension.

On entering the early retirement scheme, participants undertake to cease commercial farming definitively. Even in a case where payment may have ceased because the amount of the national retirement pension is greater than the early retirement pension, the participant may not resume farming. Farming transferees, too, undertake to practise farming as a main occupation and work the expanded holding for as long as the pension is granted to the retiring farmer, and they must continue to comply with their undertakings regardless of whether the pension continues to be paid.

These undertakings are clearly set out in the scheme documentation and are in compliance with EU regulations, and my Department has no authority to vary them.

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