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Dáil Éireann díospóireacht -
Tuesday, 10 May 1994

Vol. 442 No. 5

Ceisteanna—Questions. Oral Answers. - Farm Retirement Scheme.

Paul Connaughton

Ceist:

14 Mr. Connaughton asked the Minister for Agriculture, Food and Forestry the number of farmers who have received payment to date from the farm retirement pension scheme; and the number that have been processed for payment at this stage.

Brendan Smith

Ceist:

67 Mr. B. Smith asked the Minister for Agriculture, Food and Forestry his views on the level of uptake under the farm retirement scheme; the estimated number of inquiries; and whether adequate Exchequer funds have been provided for 1994.

I propose to take Questions Nos. 14 and 67 together.

The number of farmers expected to avail of the farm retirement scheme over the next five years is estimated at 7,000. In co-operation with Teagasc, my Department held a series of nationwide information meetings, all of which were well attended. A substantial number of inquires about the scheme were made at those meetings and by phone, written or personal contact to the Department's offices. To date, first payments for pensions have been made to 30 applicants While the processing for payment of a further 77 is at an advanced stage. I expect the 1994 allocation of £7.5 million will be sufficient to meet expenditure under the scheme in the current year.

In which areas are problems arising? Are the conditions of eligibility of vendors for the farm retirement scheme the same as originally announced? By what date must the purchaser have acquired at least 12 acres to farm in his own right to ensure that the vendor is eligible under the farm retirement scheme? What are the rules relating to the 12 acre requirement?

The apparent slowness in take-up of the scheme is due to the legal considerations involved in transferring land. In addition people may be waiting to avail of stamp duty relief announced in the budget. I will communicate with Deputy Doyle on the questions she asked.

The main purpose of this scheme is to effect the transfer of land to younger farmers and I am disappointed that only 30 applications have been approved with 77 pending. Is the Minister satisfied with the progress being made under this scheme?

We would like to see things moving quickly. However, in the circumstances, we are achieving the expected level of progress. When all the conditions have been met payment will be made. Stamp duty relief has a bearing on this. There is also a long tradition of holding onto land here and we must get over that psychological hurdle. I am confident of reaching the expected target of 1,500 applicants this year.

There has been a substantial number of applications in Cavan-Monaghan where there is greater interest in this scheme than in other countries. However, information must be sought from Letterkenny, County Donegal. Staff in local officers should be briefed to give farmers all the information they require in advance of their making an application.

I would remind Members that we are dealing with a statistical question.

I take the point made by Deputy Leonard about the sufficiency of information. An outline of the scheme was given at meetings held around the country. There is a good amount of information available and I assure the Deputy that this will be kept up to date. However, the transfer of land is a legal matter and it was stongly emphasised that any such transfers should only be made following advice from the applicants legal adviser.

I am surprised and disappointed at the small number of applications being processed. While many people attended the public meetings mentioned by the Minister, it appears many more were interested. Will the Minister accept that organisations like Teagasc are not prepared to give advice, that solicitors are not prepared to accept responsibility and that farmers are left in a difficulty and have to telephone Dublin or Letterkenny to get information? They would prefer to talk with their Teagasc adviser on what they are entitled to and how to go about applying. There is a lack of information. Most of the farmers who have applied must have spoken to either Deputy Leonard or myself and we are under pressure. This information should be supplied by experts.

To date, 339 applications have been received. For an application to be valid, the necessary legal documentation must accompany it. Payment starts on receipt of a valid application which takes about six weeks to process. I opened one of the public meetings in my area and heard questions about many unusual situations. Indeed, a type of "clinic" was held after the meeting which went on for some time. However, in a transaction involving property or assets legal advice is most important. The information required by applicants is best obtained from a legal adviser.

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