Dáil Éireann díospóireacht -
Wednesday, 4 May 1994

Vol. 442 No. 3

Written Answers. - Installation Aid Scheme

Joe Jacob

Ceist:

171 Mr. Jacob asked the Minister for Agriculture, Food and Forestry the history of the installation aid scheme; if he will have arrangements made to have the scheme reviewed, upgraded and rendered more attractive and appropriate as a measure to encourage and facilitate the transfer of farms from older owners to new younger owners and thus make the scheme more complementary to other relevant measures which he has introduced.

Minister for Agriculture, Food and Forestry (Mr. J. Walsh):

The installation aid scheme has been operated in Ireland since early 1986 with the exception of a 15 month interval in 1987-88 during which the scheme was discontinued. Under the scheme, a premium of £5,600 is payable to eligible young farmers. The scheme has been revised on two occasions since its inception.

The first revision allowed applicants for the installation premium a period of two years from the date of first installation to achieve the educational qualifications laid down. In addition the maximum labour requirement of 1.5MWU for the farm was increased to 3MWU in the case of intensive horticultural enterprises. This revision applied retrospectively so that applicants who were not accepted under the original scheme could apply to be considered under the revised scheme.

In 1991 following changes in the regulation, the scheme was again revised retrospective to 1 January, 1990. This revision allowed a person deemed to be a part-time farmer by virtue of having less than 0.5 MWU and/or who was spending less than 50 per cent of their time on the farm and/or was gaining more than 50 per cent of his/her income from non-farming activities to be eligible to apply under the scheme on setting up as a fulltime farmer.

My Department is continuing to monitor the operation of the scheme with a view to making it more attractive to young farmers. In this regard I would draw attention to the Government's commitment in theProgramme for Competitiveness and Work where additional funds have been committed to the scheme. Consultations are now taking place with the farm organisations regarding the most effective use of these additional resources. Following these consultations and subject to the approval of the EU I hope to be able to announce further improvements to the scheme.

The early retirement scheme for farmers provides for the transfer of land to qualified farmers under 50 years of age who must own or lease 5ha of land or else expand the transferred land by 5 ha or 10 per cent whichever is the greater. This scheme offers attractive premia to retiring farmers and should help progressive young farmers enter farming. This scheme is complementary to the measures under the installation aid scheme.