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Dáil Éireann díospóireacht -
Thursday, 9 Dec 1999

Vol. 512 No. 5

Other Questions. - Agenda 2000.

Mary Coughlan

Ceist:

10 Ms Coughlan asked the Minister for Agriculture, Food and Rural Development the resource implications, if any, the implementation of the details of Agenda 2000 decisions will have on his Department; the plans, if any, being put in place to effect this and ensure the earliest possible payments of premiums; and if he will make a statement on the matter. [26336/99]

The Agenda 2000 programme, involving new schemes and additional payments to farmers in the order of £1.9 billion over the next seven years, has resource implications for the Department of Agriculture, Food and Rural Development. Preparation work has been done on the implementation of these schemes. They are currently being analysed and discussions on the matter will take place shortly with the Department of Finance.

Some of those decisions relate to the introduction of the new REP scheme and the farm retirement pension scheme. Given that the old retirement pension scheme will come to an end on 31 December, will the Minister clarify that the new scheme is not likely to come into operation until next September? If so, many farmers will be in a limbo position for a period of eight months—

That matter does not arise under this question.

—and will not have the opportunity to participate in a scheme during that time. Will he clarify if that will be the position and also the position on the new REP scheme?

The REP scheme and the farm retirement scheme will finish at the end of this year. As to the new schemes, we must prepare them and send them to Brussels or the European Commission by the end of this month, following which Brussels have told us the new schemes will be prepared early in the new year. In this context, all I can go on is the speed at which Brussels does its business. We had a classic example of that during the past 12 months when there was a change to the euro on 1 January 1999 and the 5% odd that farmers lost in their early retirement pension benefits and REPS payments has still not been paid. We will submit the schemes to Brussels and I will apply the maximum amount of pressure on the Commission to issue the new schemes. There will be improvements in the two schemes. Farmers are in a dilemma as to whether to join the existing schemes or wait and join the new schemes.

Regarding the milk quota regime arising under Agenda 2000, has the Minister finalised negotiations on the new milk quota regime that will take effect once the land quota link is broken? That issue was the subject of negotiations with the Commission recently. Under Agenda 2000 it also arose that there is additional milk quota that has yet to be allocated. Have final decisions been taken on that? Approximately ten million gallons still remain. Is the Minister factoring into his consideration of this matter the case put by the milk rights group?

That matter is outside the scope of this question, but the Minister might want to give a brief reply.

I will give a brief reply. We have the initial tranche of the milk quota, that is, the additional milk, and advertisements on that appeared in the newspapers in recent days. The remaining amount still has to be distributed and the distribution year will be 2001-02. I did not take a decision on its distribution in case anomalies or exceptions might turn up during this year. I will decide with the social partners and the farming organisations during the year how best to distribute it.

Regarding the new rules – the breaking of the link with land – following intensive discussions with the Attorney General's office and the legal services of the European Union in recent months, we are virtually in a position to announce a decision on that. We will have a meeting with the social partners and the representatives of the farming organisations to fine-tune this matter and in a matter of days I expect to announce the new system.

I hope the Minister will not forget the case of the milk rights group.

As regards the earliest possible date of payment for premia, does the Minister agree with the suggestion made by Mr. Dillon of the IFA that there should be a set date for the payment of premia in the same way as others paid by the public purse are paid on a specific date? Could premia not be paid on a specific given and guaranteed date?

The previous question related to the position of resources in the Department for the implementation of schemes. From my experience, I am aware inadequate resources were available in the early 1990s when a range of new schemes were introduced, bottlenecks built up in respect of payments and we had to get derogations from Brussels to make the necessary payments. We had a great number of difficulties. However, we are up to date now and at least approximately 95% go out on time. There is a problem with 2%, 3%, 4% or 5% depending on the scheme. The range of schemes, including the ten and 22 months scheme and the advance and concluding payments, is complex. Many of the changes were brought about in consultation with the social partners and particularly with the deputy president of the IFA, John Dillon. It is the wish of the farming organisation that payments should be made throughout the year. We are trying to synchronise those and to set deadlines.

The time for this question has concluded.

May I ask one brief question?

No. Deputies Deasy and Donal Moynihan have been sitting in the House for a long time waiting for their questions to be taken. I want to give them a chance.

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