I welcome the Minister of State. He will be familiar with disadvantaged areas, coming as he does from a reasonably disadvantaged region in north Kerry. Perhaps it is not as disadvantaged as County Leitrim but at least he will have some sympathy with our situation.
The Government's commitment under the Programme for Competitiveness and Work to introduce a third tier of disadvantaged areas is to be welcomed. It is in that context that I put down this motion. The Programme for Competitiveness and Work will expire at the end of this year and in light of the controversy surrounding the implementation of a follow up agreement, I now call on the Government to designate County Leitrim under the third tier.
County Leitrim has been designated as a severely disadvantaged area since the concept was first introduced in 1975. While there have been many reviews of disadvantaged areas in the meantime, County Leitrim has missed out and for this reason I support the call of the county executive of the Irish Farmers' Association for the Government to include all of County Leitrim, as distinct from a portion, which seems to be the case according to rumours circulating in recent weeks, in the designated third tier. I understand the Government has set aside between £3 and £5 million for the third tier and of the total of 72 per cent disadvantaged and severely disadvantaged areas in Ireland, some 15 to 20 per cent will be designated under the third tier of extremely disadvantaged areas.
In making the case for County Leitrim, it should be pointed out that farmers there cannot draw down maximum cow suckler premium payments due to having smaller herds. Indeed, Leitrim farmers also face an extra inhibition in that costs estimated at an extra £10 per tonne are incurred to draw feedstuffs in the county. The third tier will also offer protection to counties such as Leitrim in relation to, for example, the current milk quota scheme, where quotas cannot be sold outside of the disadvantaged areas.
There is also a real fear that if Ireland loses its Objective 1 status following the final round of the operational programmes in 1998 and the succeeding new round of negotiations in the enlarged EU from 1999 onwards, the Government of the day will have to fight for continued fund transfers from Europe on the basis of regional disparities. This is all tied up with our GDP and our increasing prosperity, real or imagined, but there is no doubt that the collective comments coming from all sectors is that Ireland may lose its Objective 1 status. I do not want to sound like a prophet of doom but if we continue to enjoy the prosperity we are doing on a national basis, it would be very difficult for us to sustain Objective 1 status and it will be left to the Government of the day to negotiate for continuing transfers under structural and other funds on a regional basis. That is another reason that the new disadvantaged status I am calling for, once given the go-ahead, will help to maintain farm incomes in the difficult years ahead.
I have no wish to portray my native county in an adverse light. I do not believe in the philosophy of the béal bocht particularly in light of the developments and improvements in my county in recent years. However, the socio-economic data relating to County Leitrim coupled with the difficult farming conditions and the demographic changes that have taken place since the foundation of the State, all combine to provide a strong argument for inclusion in the third tier.
For example, under population changes, the county had approximately 120,000 people in 1922. In the 1991 census the population of Leitrim had reduced to 25,301, a 6.4 per cent reduction from the 1986 census when we stood at 27,000 — still a far cry from 120,000 40 years previously. The density of population at approximately 25 per square kilometre is about half the national average. Out of a total of 4,500 farmers in County Leitrim, 2,254 are over 55 years of age. While the national average for farmers over 55 years of age is approximately 40 per cent, less than 12 per cent of farmers are under 35 years while the national average is approximately 15 per cent and over 3,000 farmers out of the total of 4,500 in the county have no source of income other than farming.
It is estimated that the average income of Leitrim farmers is £7,000 per annum, or £140 per week and almost 4,000 farmers in the county have an economic size unit of less than eight which is equivalent in 1994 terms to a gross margin of less than £15,660. Only 552 farmers have gross margins in excess of this figure in County Leitrim so, in reality, we are talking about small figures.
Leitrim experiences difficult farming conditions. Some 97 per cent of the land is marginal to agriculture and a significant part of the county is upland ranging from 200 metres to 600 metres. Most of the land is of low productivity and Leitrim soils are classified as mountain and hill, lowland peat and mainly wet mineral. Less than 2 per cent of the farm-land of Leitrim has been field drained while less than 5 per cent has benefited from arterial drainage. These figures are related to the potential of drainage to improve land. Another key fact is that the rainfall in Leitrim varies from 1,400 millimetres to 2,000 millimetres while the average rainfall for the country is 1,200 metres. This suggests in a tourist-oriented county that the annual number of days of rainfall in County Leitrim is estimated to be 200 which contributes significantly to the difficult farming conditions.
The benefits of a third tier status would mean increased payments for beef cows from £84 to £97 and benefit the county by almost £500,000 while an increase in cattle headage would result in a £6 increase from £44 to £50. Since 25,000 livestock units could qualify, which would benefit the county by approximately £400,000, the total benefit to the county would be almost £1 million. This would result in an average benefit to the farmer of £208, and would exclude sheep.
Despite the growing urbanisation of Irish society County Leitrim is still a mainly rural county, heavily dependent on agriculture. Agriculture is the main employer in the county so increased support for this vital contributor to our economy is very necessary. The designation of the county as a third tier or extremely disadvantaged area will help to ensure the viability and survival of many of the county's farms. Out of a population of 25,000 under the 1991 census, I estimate that almost 20,000 are living in rural environments with only 5,000 in the small towns and villages in the county. In fact, Carrick-on-Shannon has the unenviable record of being the smallest county town in Ireland with a population of under 2,000.
Despite this picture of doom and gloom, there is a positive and optimistic note about Leitrim and its activities. There is a vibrant voluntary sector and there is a very upbeat image portrayed nationally in contrast to previous times as a result of our success on the football field which I know will gain some understanding from the Minister as well as from the Masonite plant in which his Department was involved. Many observers are hopeful we will show an increase in population for the first time since the Famine following the results of the recent census, although the best we can hope for is a stabilisation of our population at 25,000. I would be deliriously happy if we were to increase our population over the last census.
It is not my intention to paint a negative picture of my native county but it is important to note the natural disadvantages the mainly rural population face in their attempts to provide a viable economic future for themselves and their families. I hope the Minister will give a sympathetic response to this appeal.
