I move:
That a Supplementary Estimate of the amount required in the year ending 31 December 1998 for the salaries and expenses of the Office of the Minister for Agriculture and Food, including certain services administered by that office, and of the Irish Land Commission and for payment of certain grants, subsidies and sundry grants-in-aid and for the payment of certain grants under cash limited schemes.
I am pleased to present for approval a Supplementary Estimate for the Department of Agriculture and Food of £35,744,000. That sum is very welcome this year because it has been a difficult year for agriculture and farming. Prices collapsed following the Russian political and financial crisis. In addition, there was also very bad weather. This has been one of the most difficult years for farming for a very long time. I am pleased the Department of Finance has approved a supplementary budget which will allow us do a number of things to ameliorate some of the difficulties farmers are experiencing.
Subhead G8 relates to the winter fodder scheme to which £16 million has been allocated, £10 million directly from the Exchequer and £6 million under the culled young scheme. This sum will not be enough but it acknowledges the fodder problem. We used the current network and structures to quickly pay out money to farmers so that they could purchase additional fodder. The scheme is based on a survey carried out by Teagasc. I was asked to use that survey to make payments to farmers. We all know that the voucher system used in earlier fodder schemes did not work because the vouchers were not given directly to farmers, they ended up elsewhere. It is important that under the fodder scheme the available money is paid directly to farmers as quickly as possible. I hope the money will be paid out before Christmas.
Subhead C2 relates to disease eradication. This is an extremely expensive business and the extra resources are required to meet additional expenditure arising from TB and brucellosis reactor payments and additional costs related to testing and supplies. Unfortunately, there have been higher incidents of TB and brucellosis this year compared with 1997 and previous years. The estimated total needs for this subhead are £50 million this year compared with an out-turn of £38.798 million in 1997. In relation to TB, it was expected there would be 40,000 reactors this year compared to 28,000 in 1997 and 30,000 in 1996. Obviously that is an increase. This disease seems cyclical in many ways. It is disappointing that we still have high levels of both TB and brucellosis.
The apparent increases are being discussed with representatives of the Animal Health Forum which comprises a range of farming bodies and organisations. I will meet them on 10 December. There have also been significant increases in bovine TB in Northern Ireland and many parts of Britain. It is a difficult and very costly area. As Members know, brucellosis is highly contagious. We have a range of informative seminars and structures for co-operatives and creameries to ask people to be careful in husbandry and animal health management matters.
The next subhead relates to aid to farmers in disadvantaged areas. To date this year, approximately £100 million has been paid under the 1998 headage scheme. The corresponding figure for this time last year was £88.9 million. The headage was initially to be 65 per cent funded by Europe. However, due to front loading of the scheme and money getting scarce this year and next year a substantial amount of money will come from the taxpayer. It will come directly from the Exchequer. Under the tranche of headage schemes for 1994-9, a total of £726 million will be paid to farmers. Approximately half comes from the Exchequer, £365 million from Brussels and £360 from the Exchequer. That is an expensive scheme on the taxpayer. As Members know, 100 per cent of premia comes from Brussels but it is fifty-fifty for headage. It is not easy to keep that going.
Subhead N.7 deals with Leader and INTERREG. Under the Leader programme, approximately £88 million has been allocated to 37 Leader groups around the country. To date £70 million, or 80 per cent, of available funding has been spent or committed by approved Leader groups. Expenditure under the programme was slow in 1995 and 1996, but as groups became established and set up their own administrative structures, expenditure began to increase last year and again in 1998. As a result, expenditure will be £3 million greater than expected at the end of this year. By and large Leader groups are doing an effective job in different parts of the country depending on the personnel on the Leader board and how well they are linked with local communities. I am pleased we are keeping Leader funded.
Subhead B.3 relates to Teagasc. An additional £1.25 million is being provided for Teagasc. In recent years, Teagasc has not always succeeded in balancing its budget due to circumstances beyond its control. Consequently, a deficit has accumulated which amounted to £3.3 million at the end of 1997. Teagasc expects to balance its budget in 1998. It is an essential R&D and advisory body. It is important that the core debt of Teagasc is reduced and wiped out if possible.
Subhead H.3 deals with the Irish Horseracing Authority. Grant aid to that authority has increased to £42 million over five years in line with the development programme drawn up by the board under the chairmanship of Denis Brosnan. There was a difficulty regarding pensions for employees. It is proposed in this Supplementary Estimate to increase the allocation to the IHA by £1.25 million to assist it to regularise the pension scheme so that in future workers will have their pension entitlements paid in full under the pension fund.
Subhead A.1 to A.9 relates to the administrative budget. There is an increase in this due to BSE and tracability, office refurbishment and other reasons. They are the main issues. The officials and I would be very pleased to elaborate on each one.
As I stated at the outset, 1998 has been a difficult year for farming. Many of the difficulties arose from the loss of markets which was outside our direct control. Nevertheless, I have pursued every possible avenue, both at EU and domestic level, to help alleviate the present problems. In recent months, I have won a series of concessions for Ireland at EU level, principally in the area of market supports for the Irish livestock industry. I have also given top priority to the prompt payment of the direct income supports for farmers.
The committee will also be aware that there is a gross provision of £800 million - I think it is £817 million - to agriculture in the 1999 Estimates which were published a couple of weeks ago. This is a significant net increase of 19 per cent which will underpin the sector during a difficult period and assist in its future development. The control of farmyard pollution, dairy hygiene and the on-farm installation aid schemes which are important investment measures are being re-opened. There is also a significant increase in the REPS allocation. These measures are specifically designed to encourage new investment in improving infrastructure, to sustain the environment and to enhance the ability of the sector to face the competitive challenges of the future. I look forward to presenting that Estimate to the committee in due course.
The proposals in this Supplementary Estimate for 1998 serve to further underline the Government's commitment to addressing the difficulties faced by the agri-food sector and to contribute to its long-term development. I therefore commend it to the committee.