Dáil Éireann debate -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Farm Retirement Scheme.

Seymour Crawford

Question:

332 Mr. Crawford asked the Minister for Agriculture and Food the plans he has to negotiate an inflation clause into the EU farm retirement pension scheme to compensate retired farmers for the increased inflation levels especially in Ireland; and if he will make a statement on the matter. [21266/03]

Minister for Agriculture and Food (Mr. Walsh)

The rate of pension payable under the 1994 early retirement scheme is the maximum provided for by the EU Council regulation of 1992 under which the scheme was introduced. The regulation does not provide for indexation of payments.

My Department's proposals for the current early retirement scheme, which is one of the measures in the CAP rural development plan for the period 2000-06, included provision for annual increases in pension over the period of the plan. The European Commission rejected this proposal and insisted that a fixed rate be set instead. My Department then proposed a rate that was the average of the scale initially proposed. This was acceptable to the Commission and is the rate provided for in the new scheme. There are no plans to increase the rate payable under this scheme.