The position is that the independent evaluation of the headage scheme was completed in July 1995 and the evaluators came up with broad recommendations as follows: bias the scheme towards producers who have the capacity to develop; reallocate some funds to capital investment/rural development measures; adjust the payment structure by e.g. imposing an upper ceiling on payments, changing the rates, disallowing farmers over 66 years of age, introducing a household income; take action in relation to overgrazing; and consolidate the schemes into a single payment.
Following consideration of the report, I put a number of proposals to the European Commission to provide for amendments to the scheme in 1997 and following years. The intention was that two of the proposals (i) implementing a ceiling of £3,000 on payments to individual farmers and (ii) reducing the higher rate of grant for Friesian cows and in-calf heifers would come into effect in 1997 and the remaining two in 1998 — (iii) disallowing headage payments to farmers over 66 in receipt of a non-means tested retirement pension and (iv) paying headage to farmers in areas designated as degraded under the Rural Environment Protection Scheme (REPS) only if they were participating in REPS.
As part of Partnership 2000, it was provided that proposals (ii), (iii) and (iv) would come into effect from 1 January 1998 and that proposal (i) would also come into effect on that date unless agreement was reached between the Government and the farm organisations early in 1997 on a workable alternative which did not involve exceeding the total OPARDF allocation for compensatory allowances. I have not yet received any submissions in that regard from the farm organisations. Formal negotiations with the Commission services have commenced on the four proposals but I am not yet in a position to indicate when this process will be completed.