Skip to main content
Normal View

Seanad Éireann debate -
Tuesday, 14 Jul 2009

Vol. 196 No. 15

Rural Environment Protection Scheme.

I wish to share time with Senators Ó Domhnaill and Bradford.

The Minister has been in the House all day and I do not want to have a go at him in particular but I must say that, in respect of an important issue such as the cut to the rural environment protection scheme, REPS, I would prefer if the Minister for Agriculture, Fisheries and Food or one his two Ministers of State were present to respond.

The Minister for Justice, Equality and Law Reform, Dermot Ahern, mentioned Towards 2016 in his response to Senator Donohoe. One of the most objectionable aspects of the Government's shock announcement to cut the REP scheme is that it is part of social partnership. The farming pillar is part of the social partnership agreement and the unilateral decision that has been taken flies in the face of social partnership, which the Government, particularly the Taoiseach, takes pride in supporting, particularly in this time of economic uncertainty.

There is unprecedented and justified anger among farmers and farming families on foot of the Government decision to cut the scheme. Over 60,000 farming families nationally are involved in the scheme in some way. It was projected that the new REPS 4 would attract approximately 62,000 farmers before it finished — that was understood at the time it was drawn up. There are approximately 27,000 farmers in the scheme at present. The maximum payment is approximately €9,500 and the average payment is approximately €6,500.

In this time of economic uncertainty, farmers, as with everybody else, are being asked to contribute by way of the income levy — the Lenihan levy — and they are being hit by every other aspect of the Government's attempts to grapple with the economic difficulties. They are also being affected by a number of cuts directed specifically at agriculture. Since the budget last October, the suckler cow welfare scheme payment has halved, there has been a change to the rules concerning the farm waste management scheme such that funding will be made available over three years, the installation aid and early retirement schemes have been suspended and forestry premiums have been cut dramatically. The disadvantaged areas scheme, which applied to many farmers in the REP scheme, has already been subject to a cut in the order of 11% and it is projected to be subject to a cut in the order of 15% as part of the REPS-related announcement made last week. That is a shocking indictment of this Government which has neglected rural Ireland. It might feign interest in rural development but the most obvious and direct way of ensuring that is to ensure that as many viable farming enterprises are maintained as possible.

REPS has been shown to be successful. A recent report on farm waste management shows that farmers have markedly improved their facilities, whereas more than 50% of local authorities are polluting. Only a few farmers are in that category. The Government decided last week to initiate a move that would particularly hit small farmers, dry stock farmers, who have suffered a great deal in recent years because of the price of beef and lamb, and those who operate on marginal land. That is reflected in the decision to cut the disadvantaged area payments.

I hope the Minister will be able to outline to the House the details of the scheme to replace REPS that the Minister for Agriculture, Fisheries and Food mentioned last week. I understand this will come nowhere near replacing the income lost by farm families as a result of this cut but I will await the Minister's response before passing judgment.

I thank the Minister, who has had a long day, for being here tonight. It is important to have a Cabinet Minister here to hear what we have to say. The REPS programme has been very successful and contributed significantly to the quality of rural life. Since 1994 more than €3 billion has been spent on the scheme benefiting tens of thousands of farmers, their families and communities.

The scheme helps to supplement farm incomes which are dwindling year on year. Its purpose was to benefit the local environment following an EU directive. Farming is one of our oldest indigenous industries, along with fishing, and merits support on that basis. The alternative for many farmers who would not be eligible to re-apply for REPS and go on to the new scheme would be to avail of a farm assist scheme, a subvention programme operated by the Department of Social and Family Affairs, which is equivalent to the dole, paying €204 per week, and is means-tested. If those farmers who do not now qualify for the farm assist were left with that as their only means it would be an additional burden on the Exchequer.

According to the Teagasc report published last week, the average farm income is approximately €17,000 per farm. In the north west that figure was approximately €8,600 per farm. The average REPS payment was €6,200 per farm. Taking that away leaves farmers with next to nothing. I spoke to farmers over the weekend and met the county executive of the Irish Farmers Association and saw farmers at my clinics in Donegal. They are all very worried because they use the money they get from the REPS payment to subvent other loans and their incomes. For example, it services the loans they have taken out to deal with the 40:40:20 investments under the farm waste management scheme.

I appreciate that there is EU pressure on the Department of Agriculture, Fisheries and Food to consider a new mechanism. The Irish model has been very successful and may be a victim of its own success. The Department must meet the farm organisations as quickly as possible to discuss this issue. I understand that talks may have broken down and while I am not laying blame we need to open the channels of communication immediately.

There should be a cost-benefit analysis of this decision because while it may save money in one Department it may cost money in another, the Department of Social and Family Affairs. Farmers need clarity on the new scheme. This is a menu scheme similar to one in the North of Ireland which runs from 2007-13 with available resources of £220 million, including EU money, which aims to sign up 18,000 farmers by 2013. The farmer selects the area from which he wishes to gain money. There must be absolute clarity on this.

I thank my two colleagues for allowing me to say a few words on this important issue which is causing grave concern in rural Ireland. I thank the Minister for his presence here at this late hour. We hope that he will pass on our concerns to the Minister for Agriculture, Fisheries and Food.

It was sadly ironic that last week as the Government shut down the Dáil at the end of the political season, the Minister for Agriculture, Fisheries and Food was shutting down a significant income stream for rural Ireland and farming families. REPS has been an unqualified success in bringing income to rural communities, improving and maintaining our environment and giving farmers some degree of certainty in their financial planning. Thousands of farmers are in a state of disappointment, despair and shock following the Minister's decision.

Last weekend we all met farmers who were deeply concerned and angry and very surprised at the Minister's announcement. No agricultural issue in recent years has caused the same degree of disquiet. It is important that dialogue between the farming organisations and the Minister and his officials be re-started at the earliest possible opportunity. There is some talk of an alternative scheme but its details are sketchy. The bottom line, however, is that the combination of EU and State money that REPS ploughed into agriculture, the rural income stream and the environment is being significantly reduced and for some people it will be totally cut off. That is unacceptable. I ask the Minister, notwithstanding that it is not his decision, to convey our sincere concerns to the Minister for Agriculture, Fisheries and Food and ask him to reconsider this urgently and try to bring some degree of aid and hope to Irish farmers.

I thank the Senators for raising this matter. As they have said, the rural environment protection scheme has undoubtedly been a successful measure. By the end of 2009, payments made to farmers since the launch of the scheme in 1994 will have passed the €3 billion mark. REPS has always been about much more than money. It has delivered enormous benefits in enhancing the rural environment, water quality, biodiversity and the landscape.

However, the success of the scheme has brought its own challenges. When the applications submitted last week are included, the number of participants in REPS is at the highest ever level at well over 60,000. Payments arising from liabilities this year will also exceed expenditure under the scheme in any previous year. We are, therefore, now at a point of both record participation and record funding for the scheme. The scheme is now oversubscribed and, at a time when there are unprecedented pressures on the public finances, the Government had no option but to announce the closure of entry to the scheme last week.

It is important that I make the point that REPS was never intended to be purely an income support like the single payment or the disadvantaged areas schemes. In fact, the EU regulations are quite explicit in providing that agri-environmental schemes like REPS can only compensate farmers for income foregone and additional costs incurred through farming in a more environmentally friendly way than they are otherwise obliged to do, whether under legislation or, more recently, according to the requirements of the single payment scheme.

I want to stress the ongoing scale and benefits of payments under the scheme. Despite the closure of entry to the scheme, the fact is that this year, the Department will issue REPS payments amounting to €330 million to some 63,000 participants in the scheme. Next year, the numbers in the scheme will still be around 54,000, a level of participation as high as in any year to date. Applications received in the Department up to last Thursday are being processed and, if they are valid, the applicants will enter into new five-year contracts. If farmers, with contracts ending after 31 January 2010, submitted new applications by last Thursday, they will be eligible for REPS 4 contracts running to the end of 2015. The Department will continue to honour payments to all existing participants for the remainder of their five-year plans.

In acknowledging the impact of the closure of the scheme, its value since its introduction in 1994 and the need to replace REPS with an agri-environmental measure, the Government has decided to allocate all the modulation funds secured by the Minister in the recent CAP health check, as well as funding negotiated under the European economic recovery plan, to a new agri-environment measure.

The total funding of this new measure will be determined only in the context of the 2010 budget-Estimates process later in the year. It is not possible, therefore, to indicate, at this stage, what the level of individual payment under the new scheme will be; no decisions in this regard have yet been taken nor will any be taken until much later in the year.

The Government is determined, though, that all available EU funding will be drawn down and is committed to providing the necessary matching funding. The Government will have to provide an amount from national funds equivalent to one third of what is available from the EU to draw down the modulated funds, all of which are being allocated to the new agri-environment scheme.

The Department's intention is to give priority in this new measure to farmers who have previously been in REPS and officials will be entering into discussions very shortly with the farming organisations and the other stakeholders about the details of the new scheme.

In the meantime, an outline of the new measure is included in proposals to the European Commission for amendments to the current rural development programme, which will be with the Commission by tomorrow to ensure the availability of the modulation funds. I expect that the new agri-environmental measure will be available no later than 2010 for those who no longer have an opportunity to apply for REPS 4.

I readily acknowledge the response of farmers to the decision to close entry to REPS but I must emphasise that an alternative measure is being put in place, which will be quite different from REPS, in so far as it will involve the selection of individual measures, selected from a menu of such options, rather than the existing "whole of farm" approach. It will be a simpler scheme, both in terms of participation and administration, and the compliance costs will be considerably lower than those associated with REPS.

It is unfortunate that a range of significant investment measures also announced last week did not receive the appropriate coverage. This package of new measures, worth €113 million, includes a range of supports for the dairy and sheep sectors and for young farmers. These measures demonstrate that the Government, notwithstanding the extreme difficulties the country faces, is committed to continuing investment in the agri-food sector and to the long-term future of farming. I want to assure the House on behalf of the Government that this commitment will be delivered on.

It was indicated last week when the announcement was made that the current scheme is 60% funded by the Government and 40% funded by the EU. The Minister concerned indicated that the 40% European funding would be retained in whatever new scheme was being drawn up. That is not indicated in any way, shape or form in what the Minister present said in his reply. He also said that REPS was not designed to be an income support scheme but he has outlined that the new scheme when it comes into force will contain funding from modulation funds and from the European economic recovery plan. In other words, will he confirm that the new scheme as it will take shape will be an income support scheme? He outlined that €113 million of new supports. Can he confirm that what has happened is that the farmers who would have received €330 million under REPS will now only receive €113 million under different headings under a series of new schemes that will be set up and effectively the Government has decided to take €220 million out of the pockets of farmers?

I can assure the Senator that the Government will do its level best to ensure that we access all the EU funding that is available and that we will provide the necessary funding in this respect. In regard to the new scheme, its details have not yet been indicated and they will be available later this year.

There is no easy way around the fact that our public finances are in a difficult state. People like the Senator in opposition can call for cuts everywhere while also calling for more services and more spending but the two will simply not meet.

We have outlined where the cuts should be.

The Seanad adjourned at 12.15 a.m. until 10.30 a.m. on Wednesday, 15 July 2009.
Top
Share