Dáil Éireann díospóireacht -
Tuesday, 29 Jun 1999

Vol. 507 No. 2

Adjournment Debate. - Grant Payments.

Mr. D. Carey

I raise an important matter for County Clare farmers. I refer to the five month delay in REPS payments in County Clare. The previous Minister for Agriculture and Food, Deputy Yates, established a charter of rights for farmers which would have enhanced the rates of EU grants to farmers. The charter brought about a great improvement in the relationship between farmers and the staff of the Department of Agriculture and Food where there was a change of attitude towards farmers. There now appears to be an industrial relations problem in the Department and I plead with the Minister to resolve this difficulty, even if doing so costs money.

While I acknowledge the response of the Minister and the Department to the crisis caused by last year's wet weather and the resulting shortage of fodder, the delay in payments under the REP scheme is causing great hardship. Farmers have invested heavily in slatted houses and other pollution control measures and are now kept waiting for payment. The editor of the Farmers Journal said in last week's issue that last year was a profitless year for cattle and beef feeders. It is generally acknowledged that there is a very small profit margin in farming. Farmers who have borrowed to make the required improvements are being charged interest rates of between 11 and 15 per cent. If the weather was good and cattle prices very high, farmers would not complain about a five month delay in grant payments, but the Minister must agree that the delay in payments is causing great hardship in a year when farmers are experiencing a huge shortage of income.

I appeal to the Minister to resolve the dispute in his Department, if necessary by calling in a third party. Farmers' representatives spoke to the Minister about this matter and a slight improvement followed. However, 1,300 applicants still await payment. It has been claimed that approximately one fifth of the total payments have been paid and the Minister claimed, in reply to a parliamentary question, that half had been paid. Approximately 1,300 small farmers who have made no profit in a year of dreadful weather still wait to be paid.

If we wish to see an adequate response to problems such as farmyard pollution, we must look after farmers, who have invested heavily, in this time of need by improving the rate of payment and making those payments on demand, as was promised in the charter of rights.

Mr. N. O'Keeffe

I thank Deputy Carey for raising this matter on the Adjournment, although as usual he has highly exaggerated the situation. The position is that Ireland's performance in delivering direct payments to farmers under EU headage and premium schemes is among the best in the EU and compares very favourably with that of other member states. For most schemes Ireland rated between first and fifth among the 15 member states in terms of early payment in the 1997-98 scheme year. Ireland was first in the arable aid and ewe premium schemes, third in the suckler cow scheme and fifth in the special beef premium scheme.

Under the 1998 headage and premium schemes, more than £768 million has been paid, of which £35 million went to farmers in County Clare. Payments under the 1998 schemes were made in line with the payment targets set out in the charter of rights for farmers. The Government implemented the charter of rights when it took office. It has made major improvements in the payment of all schemes and has had great suc cess in that area. I visited County Clare on a number of occasions. I have been to the Clare County Show on two occasions and I have heard no claims such as those made by Deputy Carey. The most recent payments were in respect of 1998 extensification premiums under which £75 million has been paid in the last month or so. A new scheme to combat pollution was introduced last week and was widely welcomed.

Mr. D. Carey

No forms are available.

Mr. Browne

(Carlow-Kilkenny): The scheme was not rushed.

Mr. N. O'Keeffe

The scheme was announced last week and anyone interested in it should consult his or her local farm development officer after next Monday. Schemes for dairy hygiene and installation aid have also been introduced. The Government is moving progressively in making payments to farmers. We know and understand the needs of farmers, especially the farmers referred to by Deputy Carey. Payments under all the 1998 schemes have now been made in all eligible cases, in line with EU regulations and the charter of rights for famers which require that these payments be completed by 30 June 1999.

The position with regard to the 1999 scheme is that, to date, £59 million has been paid to Irish farmers. These 1999 payments represent, in the main, payments of the first instalment of the 1999 ewe premium and payments under the 1999 deseasonalisation slaughter premium scheme. Over £41 million was paid to Irish sheep farmers, representing the first instalment of the 1999 ewe premium. These payments were made at the earliest possible date consistent with EU regulations and will ensure that Ireland will again rank number one among the 15 member states in terms of early payment of this scheme.

There was, unfortunately, some delay earlier this year in processing REP scheme applications in County Clare. My Department has addressed this issue in recent months and considerable progress has been made, particularly in the past six weeks. The progress has been facilitated by drafting in additional staff to County Clare and these will remain in place as long as necessary.

Direct payments constituted 56 per cent of farmers' income in 1998 and this proportion is set to increase in the coming years, following the successful outcome of the Agenda 2000 negotiations. It is my objective that the improvements in delivery of these payments which has been achieved in recent years are built on and that the service provided by my Department to farmers is efficient, fair, friendly and transparent.

The amounts paid to farmers in County Clare under 1998 headage and premia schemes are as follows: cattle headage-beef cow, £8.6 million; sheep headage, including top-up, £164,000; suck ler cow premium, £11.490 million; equine headage, £58,000; special beef premium, £6.690 million; goat headage, £5,000; slaughter premium, £300,000; ewe premium, £1.074 million; extensification premium, £5.443 million; arable aid, £16,000; BSE-agrimonetary package, £1.009 million; winter fodder, £1.234 million; winter fodder top-up, £549,000.

The total amount paid under 1998 schemes on 29 June 1999 was £35.115 million. The amounts paid in County Clare under 1999 headage and premia schemes are as follows: slaughter premium, £119,000; ewe premium, £447,000; winter fodder, £298,000. The total amount paid for 1999 schemes on 29 June 1999 was £566,000. The figures are on the record of the House and Deputy Carey may announce them on local radio in County Clare.

This shows the successful service provided by the Government to agriculture in Deputy Carey's county. The results of the local elections show how successful the Government's performance is.