Dáil Éireann debate -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Farm Retirement Scheme.

Michael Noonan

Question:

300 Mr. Noonan asked the Minister for Agriculture and Food the number of persons from whom overpayment is being reclaimed in respect of the farm retirement scheme; the reason overpayment was made in the first instance; if his attention has been drawn to the fact that significant claims for repayment are being made from farmers who have transferred all assets to their family; and if he will make a statement on the matter. [19891/03]

Minister for Agriculture and Food (Mr. Walsh)

My Department is currently pursuing recovery of overpayments under the early retirement scheme from 968 persons. In the majority of cases, the overpayments arose because participants in the scheme, or their spouses or partners in joint management cases, were receiving contributory or non-contributory old age pensions which were not being offset, as EU regulations require, against their pensions under the early retirement scheme.

It is a condition of the scheme that on reaching the age of 65, participants and their spouses or partners in joint management cases, must apply to the Department of Social and Family Affairs for either the contributory or the non-contributory old age pension. If a pension is awarded it must be offset against the payment under the early retirement scheme. Participants in the scheme are made aware of this condition when they join, and they are required to notify my Department if they or their partners in joint management are awarded an old age pension.

Under its obligations as a paying agency on behalf of the European Union, my Department is obliged to pursue such overpayments. However, it is the policy of my Department to do everything possible to minimise any hardship to the persons concerned.

Denis Naughten

Question:

301 Mr. Naughten asked the Minister for Agriculture and Food the impact which the Fischler proposals will have on farmers in the early retirement scheme; the measures he intends to implement to address the loss in value of their farm asset; and if he will make a statement on the matter. [19947/03]

Minister for Agriculture and Food (Mr. Walsh)

I have initiated a process of consultation with the social partners and other interested groups and individuals before deciding on the implementation of the decoupling elements of the agreement on the mid-term review of the CAP. I expect to make a decision in the relatively near future. Until this process is completed, it is not possible to say with complete certainty how the decoupling proposals will impact on retired farmers.

My officials are also involved in ongoing discussions with the European Commission on the detailed rules for implementing the agreement. While it may be some time yet before the position is clear, my officials have raised and continue to raise a number of issues relating to farmers who have retired under the early retirement schemes and the implications for them of the decoupling and single payment proposals. By definition, retired farmers cannot activate entitlements earned during the reference period and the Commission's position is that entitlements should not be linked to land but should go to farmers who were active during that period. However, it also indicated that it favours arrangements that family members who were not farming during the reference period, but subsequently take over a holding, will have access to the national reserve. My officials are working to secure as favourable an outcome as possible, having regard to the legitimate aspirations of all stakeholders.