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Dáil Éireann díospóireacht -
Thursday, 18 May 2000

Vol. 519 No. 4

Other Questions. - Early Retirement Scheme.

Seán Doherty

Ceist:

12 Mr. Doherty asked the Minister for Agriculture, Food and Rural Development when the new early retirement scheme will be introduced; and if he will make a statement on the matter. [13753/00]

The rural development plan 2000-06, which contains proposals for a new scheme of early retirement from farming along with other measures, was submitted to the European Commission in December last and the Commission has six months from then to consider it. Formal negotiations on the plan with the Commission are now well under way, although it is not possible to indicate at this stage when the Commission will be in a position to approve it. Under the plan a provision of £612 million has now been made available for the scheme. When the plan is approved, my objective is to secure the earliest implementation of each measure including the new early retirement scheme.

Deputy Ring made a similar point on installation aid earlier – the fact that the new retirement scheme will not be in operation until the end of the year is a live issue around the country. Many farmers had understood from the Minister's comments that it might begin in June or July, but it now seems that it will begin much later in the year. Is the Minister aware of the tremendous hardship this has caused people who have been caught out when renting land? Will he indicate when he believes the scheme will be introduced? It is a matter of great concern.

The early retirement scheme is a very successful one. It is the first such scheme that has been successful, although some say it may be too successful. I believe it is a good scheme and to that end the new scheme was submitted to Brussels in December. We are told by Brussels that it hopes to have the scheme ready for the summer – which is the same situation as with the installation aid scheme – but, having regard to past performances by the European Commission, I believe it will be later in the year. I would welcome the early approval of the Commission and everything is being done to secure that approval.

We had an earlier question on installation aid, to which the Minister referred. It and the early retirement scheme have been very successful and were primarily devised to increase land mobility and the transfer of farms to younger people. Notwithstanding these very good schemes, why is it that the age profile of farmowners is still excessively high? It is a grey industry and we need to look at the effectiveness of these schemes as a tool for facilitating the transfer of land to younger, qualified farmers. Ownership in the industry has not changed despite the success of these schemes.

Deputy Creed is correct that an inordinate number of farmers are in the older age bracket. Given the opportunities now available outside farming, as someone put it to me recently farmers can now afford to educate their children up to third level, but their farms cannot provide a reasonable income and lifestyle for those graduates. If they get opportunities elsewhere they avail of them. Members will know of cases where farmers find it difficult to take up the family farm and to accept what would have been regarded a fairly good living in our generation.

All these schemes – farm retirement, installation aid, training and IT skills – are being provided to improve the situation, but that is not happening on the ground. While people are entitled to options other than farming, we must try to retain people in rural communities and give them opportunities there also.

Many farmers are waiting for this new scheme and cannot make decisions as a result. Regarding the old scheme, why, despite the commitment to a two month turnaround from the date of application to the date of award of grant, is that observed more in the breach than the compliance? We in Westmeath and the midlands find there are not enough staff to deal with the assessment of submitted forms. Is that the position? Will the Minister investigate why it is taking so long for those in the midlands, especially in Longford and Westmeath, to get farm retirement scheme grants? Those people submitted forms before 31 December.

Following CAP reform in the early 1990s and the more recent Agenda 2000 a range of new schemes was brought into operation and the Department was stretched in a number of counties and areas. It took a long time to process some schemes – longer than should be necessary. The good news is that we have approval for additional staff for a number of those schemes and also for a number of staff in the key IT area. The difficulty is that the staffing of Departments is the responsibility of the Civil Service Commission and once approval for additional staff is received advertising must take place and panels must be formed. Often it is found that those on the panels have taken up very good jobs in some of the e-commerce companies. In many cases staff trained by the Department leave and avail of better jobs outside the constraints of the Civil Service.

Will the Minister introduce a national scheme?

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