Dáil Éireann debate -
Tuesday, 27 May 2003

Vol. 567 No. 5

Written Answers. - Farm Retirement Scheme.

Tom Hayes

Question:

185 Mr. Hayes asked the Minister for Agriculture and Food the amount of money which was provided by the EU for the farm retirement scheme; the amount which has been paid to date under the scheme; the cost of implementing the scheme; and if he will make a statement on the matter. [14310/03]

Minister for Agriculture and Food (Mr. Walsh)

The first scheme of early retirement from farming was 75% funded by the European Union from 1994 to 2000, with the balance being met by the national Exchequer. Since 2000, payments under the scheme and payments under the current scheme are both 50% co-funded by the EU and the national Exchequer. Expenditure on the schemes of early retirement since 1994 is set out in the table below. The figure for 2003 represents expenditure up to end of April 2003.

Expenditure on Schemes of Early Retirement from Farming

Year	1994 Scheme	Current Scheme	Total
	€m	€m	€m
1994	6.937	0	6.937
1995	35.151	0	35.151
1996	55.919	0	55.919
1997	72.451	0	72.451
1998	84.938	0	84.938
1999	87.050	0	87.05
2000	90.876	0	90.876
2001	76.870	3.007	79.877
2002	65.299	13.529	78.828
2003	19.462	6.728	26.190
Totals	594.953	23.264	618.217

The annual staffing cost in my Department of all aspects of the administration of the Scheme is currently of the order of €3 million.

Pat Breen

Question:

186 Mr. P. Breen asked the Minister for Agriculture and Food the reason a person (details supplied) in County Clare received no farm retirement pension for January and February 2003; the reason his Department are now stating that there is an overpayment to their pension after adjustments were made; and if he will make a statement on the matter. [14344/03]

Minister for Agriculture and Food (Mr. Walsh)

The European Union regulation governing the early retirement scheme requires that the early retirement pension be paid as a supplement to any national retirement pension that the participant, or his or her spouse or partner in a joint management arrangement, receives. The Department has an obligation, therefore, to ensure that a participant does not receive full payment of early retirement pension if he or she is also entitled to a national retirement pension.

On 31 July 2002, over three months in advance of his 66th birthday, my Department informed the person named that he must apply for both the contributory old age and non-contributory pensions and provide documentary evidence of the outcome of his applications. However, as he had not provided this information by the time he reached the age of 66 on 20 November 2002, my Department was obliged to suspend the payment of his early retirement pension from January 2003.

My Department subsequently received confirmation from the Department of Social and Family Affairs of the award of a non-contributory old age pension to the person named from 22 November 2002. The overpayment for the person named, amounting to €784.86, arose because he was paid the full amount of early retirement pension and also received the non-contributory old age pension for the period 22 November 2002 to 31 December 2002. His pension has been restored at a reduced rate to take account of payment of his old age pension. Additional deductions will also be made up to June 2003 to recover the overpayment in full.