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Seanad Éireann debate -
Thursday, 11 Feb 1988

Vol. 118 No. 10

Adjournment Matter. - Disadvantaged Areas Scheme.

I welcome the Minister of State, my council colleague, to the House. He comes from a severely disadvantaged area in terms of EC policy and I am sure that he will be receptive to my case on behalf of the farming community in north Cork. I will not detain the Minister too long with details. I wish to state the reasons these areas throughout north Cork should be included in the disadvantaged areas scheme. More importantly, I would like to call on him to begin the process of examining the applications from the farming community and to try to have those examinations concluded as quickly as possible. That is the most important thing which is needed at present.

Let me speak of the disadvantaged areas scheme as a whole. The advantages which fall to communities included in the scheme are in many cases quite substantial and accordingly it can be understood quite easily why any area which feels it would qualify under the different criteria will make a serious attempt to be included. The area I am speaking of is a large area throughout north Cork, the Mallow, Fermoy, Mitchelstown area, and they believe they qualify for inclusion under the different criteria. Accordingly, at present they are seeking inclusion in the disadvantaged areas scheme. They began the application procedure a little over a year ago when they examined the different criteria which are considered necessary. They felt they qualified under these criteria.

Basically, the three criteria are as follows: (1) A record of a falling population in the areas over a number of years; (2) an average income which is lower than the average national income and (3) a poorer soil quality. Within the north Cork community it would seem that these criteria are fulfilled and, accordingly, we feel we have a genuine right to inclusion in the scheme. A little over a year ago meetings were held throughout the north Cork region. Farmers were contacted, different groupings were set up, investigations were begun and surveys were carried out. In doing all of this, the farming community received the full and active support of the ACOT personnel to whom they are very thankful and it is significant that the ACOT personnel were of the opinion that this area should qualify for the disadvantaged areas scheme.

These areas encompass the towns of Mallow, Mitchelstown and Fermoy and the advantages to these regions of a decision by the Government to include the areas in the western package scheme would be tremendous. Within this area there is a huge forestry potential. At the moment the amount of forestry land in this area is quite minimal and it could be increased drastically if the grants which are at present available under the disadvantaged areas scheme became available to north Cork. There would be a major take-off in the forestry industry in this area.

The whole community, not just the farming community, is aware of the importance of an increase in forestry acreage throughout the country. The Minister of State with responsibility for Forestry, Deputy Smith, seems to be doing a very good job in this regard, but I think farmers will only invest in private forestry if grants are available. The grants which are available in the disadvantaged areas at present are most attractive and, accordingly, an increase in forestry would be very evident in he north Cork region should we gain disadvantaged status.

It is important, especially at a time of milk quotas and grain quotas throughout the European Communities, that extra farming options are made available to our agricultural community and the designation as a disadvantaged area would help in this respect. The sheep industry would also benefit. At present, there still is a sheep meat deficit throughout the European Communities. I know that this is a position that could change quite easily in a relatively short period of time but, again, it must be noted that the sheep industry in the north Cork area would expand quite dramatically if the extra grants which are available under the disadvantaged areas could be availed of.

The beef industry, which is at present going through a difficult period would also benefit a lot from the extra suckler grants, etc. that are available. It must be admitted that there would be great scope for increased agricultural diversification if we were included in the disadvantaged areas scheme. Taken together all these advantages, would provide a huge income boost for the whole north Cork region.

A decision by the Government to extend the disadvantaged areas to include the north Cork region of which I speak, would be the biggest economic boost to north Cork and to Cork city for many years, which we must not forget. That economic boost was never more needed than it is at present because the scourge of emigration, which we thought had left us is again coming back to haunt us. A village only four or five miles from where I live, a little place called Kilavullen, is at present suffering from such an emigration problem that out of a population of 200 or 300, 30 people who had emigrated came home at Christmas. When you consider figures like that, you would have to accept that this scourge of emigration is hitting areas which it had not hit before. Accordingly, we must do everything in our power to try to increase employment and increase economic activity in these areas, and the disadvantaged area status would be very helpful in this respect.

We cannot forget the fact that the funding is coming at a rate of 50 per cent from the EC and that is good value. Basically every pound spent costs only 50p and that must be considered a bargain.

The first step which has to be taken, and this step has not been taken, which is the cause of major disappointment to the farming community, is the assessment of their applications. A year ago they were told an assessment would be carried out as soon as possible and it was hoped a start would be made in the summer of 1987. The assessment of their cases and the examination of the land would not cost a lot of money: in fact, it could cost absolutely nothing because the personnel are available in the Department and all it means is transferring them from the comforts of Agriculture House to the land for a couple of weeks so that they can begin the examination. That is the priority at present. We are seeking that the assessment process should begin and that is not much to ask for.

As long as we are assessed, and assessed fairly, we are more than prepared to accept the decision of the Government. We are not asking for millions of pounds overnight. We are not asking for millions of pounds next month or even perhaps next year, we just want a start to be made, so that the situation can be clarified. I appeal to the Minister not just in the long term to treat our case with favourable consideration but, more importantly, in the short term to begin the processing of the applications. In the long term it will be of tremendous economic benefit to the people of north Cork. I will leave my comments at that, there is little more that has to be said. I hope the Minister's reply will be favourable.

Let me thank my colleague, Senator Paul Bradford, for bringing this important matter to the attention of the House and to the attention of the Department of Agriculture and Food. He is obviously concerned about people in the farming community, particularly in this area. I personally have a great deal of sympathy for this case because in west Cork just as in north Cork, we have the whole range of handicapped areas, less and more severely handicapped and the disadvantaged areas. I would like to see an improvement and an extension of those areas.

By way of background, at the outset I would like to say that the disadvantaged areas scheme provides grants to qualifying farmers for maintaining cattle and sheep in designated areas. Three headage schemes operate throughout the disadvantaged areas according to the degree of handicap; first, the cattle headage payment scheme operates in the more severely handicapped areas and applies to all types of cattle over six months; second, the beef cow headage scheme is operated in the less severely handicapped and applies to beef cows only. Finally, a sheep headage scheme is operated in all disadvantaged areas, including the designated mountain sheep-grazing lands, with payment of mountain-type adult and hogget ewes. As the Senator rightly pointed out, there is a great opportunity for the country, not alone in sheep but in cattle as well. It would be of tremendous advantage to the Exchequer if we could get a reclassification and extension of these areas.

Expenditure under the three schemes now runs at £58 million annually, 50 per cent of which is recouped from the EC in the year following payments. We do in fact get back 50p for every pound we lay out. The only difficulty about that is that it is only 50p and it comes the following year. The total area of Ireland is 6.9 million hectares and at present 3.1 million hectares are classified as more severely handicapped. One million hectares are classified as less severely handicapped and some 100,000 hectares as mountain sheep grazing lands. Over 60 per cent of the country is designated as disadvantaged of which 74 per cent is classified as more severely handicapped. In County Cork itself 37 per cent of the county, amounting to 276,000 hectares, is designated as disadvantaged with 251,000 hectares beings classified as more severely handicapped, 21,000 hectares as less severely handicapped and 4,000 hectares as mountain sheep grazing land.

A proposal to reclassify all less severely handicapped and mountain sheep areas to more severely handicapped status was made to the EC Commission on 4 February 1987. The Commission indicated, however, that the proposed across-the-board change did not meet the requirement in the relevant Directive, that the level of compensatory allowance or headage payments should be fixed in accordance with the severity of the permanent natural handicaps. This ruled out the payment of the same rates of headage grants throughout all our disadvantaged areas and so the proposal made in February of last year was not acceptable to the Commission. Because of the Commission's objection, the Government approved the modification of the February proposals as part of the new approach and are pursuing with the Commission the possibility of securing a substantial increase in FEOGA recoupment in respect of the headage payments. A revised submission was lodged with the Commission on 4 November 1987. The revised proposals basically involve the extension of headage payments on cattle except dairy cows, in less severely handicapped and mountain sheep areas but at a lower rate than applies in more severely handicapped areas. The exact details would have to be worked out with the Commission authorities.

Reasonably uniform implementation of structural policy throughout the Community is not possible if the least well off member states must finance a high proportion of the expenditure from their own resources. An inevitable result is that the regions where structural action is most needed actually receive less benefit from this policy and that is of course because the Exchequer in the least well off countries is not able to put up the £ for £ and wait a year for recoupment, whereas the wealthier states can afford greater resources from their Exchequers. We believe that this can be rectified only by the early introduction of improved European Communities' reimbursement rates as has been suggested by the Commission, in its proposals on structural reform. The Commission has agreed to a revision of the western package which involves increased Community financial support through a reimbursement rate of 70 per cent as compared with the existing 50-50 rate, although this still has to be agreed by the Council of Ministers.

The Government are now seeking, first, a higher recoupment rate in respect of expenditure under the disadvantaged areas scheme and, secondly, are requesting that payment of the FEOGA moneys be made in the year in which national expenditure is incurred rather than one year in arrears as at present. Such improved financing arrangements would enable the proposed revisions to the headage schemes to be financed without imposing an additional burden on the Exchequer. The Government consider that there are some further areas worthy of inclusion in the disadvantaged areas which are excluded at present, in other-words, that there be an extension of the disadvantaged areas.

Since the completion of the last review of the disadvantaged areas in 1985 a considerable number of representations on this aspect has been received from different parts of the country, including north Cork which is referred to by Senator Bradford in this motion before the Seanad, and despite the fact that the last review was carried out on a townland basis and in a very detailed manner, there is a feeling in some areas that they have a case for inclusion in the disadvantaged areas especially where adjoining areas of comparable land quality are already included. In my advice clinics I hear quite a lot of this complaint and as I have said I have great sympathy with the people concerned. I must point out, however, that further extension of the boundaries of the disadvantaged areas is not a mere formality.

We have had already three extensions to the original boundaries and a very substantial areas has been added to the regions classified as disadvantaged when the scheme was introduced in 1975. Despite this we have incorporated in the latest submission to the Commission proposals in regard to newly designated areas, but any widespread extension to the boundaries will have to satisfy both the Commission and the Council of Ministers. This will involve a detailed survey of the potential areas to establish if they meet the criteria set out in the directive for designating areas as disadvantaged. The work involved in terms of its organisation and operation at field level is substantial and so it would take a considerable length of time before a detailed submission could be finalised. The position in north Cork will of course be given every consideration in any examination of new areas for inclusion in the disadvantaged areas scheme. The whole issue is one of considerable importance in many areas and the Seanad, and Senator Bradford in particular, can be assured that we are most anxious to bring it to a successful conclusion as quickly as possible.

I ask the Minister whether he has any idea as of now as to when the examination of these areas may begin? That would be considered by the people in this area to the the main priority.

I have been talking to personnel in the Department of Agriculture and Food on that matter and I can say that it will be taken up in the very near future.

The Seanad adjourned at 5 p.m. until 2.30 p.m. on Wednesday, 17 February 1988.

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