Ceist:
18 Mr. Coveney asked the Minister for Agriculture and Food if he will reinstate the installation aid scheme immediately. [15434/97]
Priority Questions. - Installation Aid Scheme.
The scheme of installation aid for young farmers was one of the submeasures operated under the Operational Programme for Agriculture, Rural Development and Forestry 1994-99. The programme had an indicative budget of £17 million and was launched in December 1994. It was expected that about 3,000 young farmers would participate. Due to the high level of demand, the scheme was suspended with effect from 7 August 1997 in respect of new applications. By 1 October 1997 a total of some 3,240 young farmers had been paid about £18 million under the scheme. In addition there are about 600 other applications being processed currently with a potential grant commitment of about £3.5 million. As part of the operational programme the independent analysis and evaluation unit carried out a detailed evaluation of the scheme during the term of office of my predecessor. It indicated that the scheme should be terminated as it was not meeting the main objective of encouraging the earlier transfer of farms. The Department of Agriculture and Food, as part of its submission to the mid-term review, sought additional funds to enable the continuation of the scheme. This was additional to funds sought in other areas where the level of applications had already exceeded the level of funds available. The mid-term review took on board the views of the independent evaluation report and a report prepared by consultants on the operation of the first half of the operational programme, both of which recommended the suspension of the scheme, and accordingly did not make any additional funds available for the continuation of the SIA scheme. The scheme was consequently suspended on 7 August 1997.
It should be noted that there are currently in excess of 6,600 farmers participating in the scheme of early retirement from farming. While this money is not going directly to young farmers, the benefits of the earlier transfers along with other national aids have greatly assisted in the improvement of their position. In addition, An Action Programme for the Millennium recognises the need to support young farmers by ensuring adequate provision for access to quota or production rights by qualified young farmers and stamp duty exemption for young farmers taking over family holdings.
I am considering the matter and will be closely monitoring progress of other large-scale projects in the Community Support Framework as a whole in early 1998 to see if savings are likely to be identified in any area.
Mr. Coveney
Fianna Fáil gave an unequivocal written undertaking to Macra na Feirme on 21 May to continue the scheme. In view of this and the refusal of his predecessor to discontinue the scheme despite recommendations made to him, how can the Minister justify his change of mind in such a short space of time to young farmers?
I remind the Deputy that my predecessor signalled his intention to terminate this scheme in September 1996. I have a copy of the Irish Farmers' Journal from 14 December 1996 in case there is any doubt about this. The newspaper, under a heading saying that installation aid is to be dropped, reports the Minister for Agriculture, Food and Forestry who was attending a young farmers' conference in Cork as saying that delegates applying for the scheme should do so sooner rather than later.
Quote the words of the Fianna Fáil Party manifesto.
This is zero tolerance.
Mr. Coveney
Since others are interested in quoting, I wish to cite a memorandum which Fianna Fáil sent to Macra na Feirme on 21 May regarding the installation aid scheme. It states, "Fianna Fáil is committed to the continuation of this scheme which is very important not only to young farmers but to the general profile of agriculture". How can the Minister say that within a matter of months he has changed his mind? He was aware of the response of the previous Minister and of the relevant reports. I do not see how he can justify this decision and, as he is an honourable and decent politician, he should reverse it.
The difficulty is that there was inadequate funding when I arrived in office to allow the continuation of this scheme. It is a good scheme and every encouragement should be given to young farmers. We must be mindful of the prudent management of the national finances and prioritise how money is spent. Cognisance has to be taken of the findings of any evaluation of schemes. The consultant's report into this scheme indicated statistics which show that most young farmers commencing farming now are under 35 years of age regardless of their access to the scheme; changes in national tax laws have succeeded in removing the main costs associated with the transfer for the majority of younger farmers; very large farmers are in receipt of aid under this scheme which means that resources are not concentrated on those who most need it; and young farmers should be supported with grant aid for on farm development instead of once off lump sums. It concluded that the scheme should be suspended. I had no option in the face of inadequate funds but to suspend the scheme from 7 August.
I will be seeking to provide resources and to encourage younger farmers in every way possible to set up in farming and to optimise their potential.
Mr. Coveney
They are not encouraged by this action.