Vol. 521 No. 6
48 Mr. Penrose asked the Minister for Agriculture, Food and Rural Development the current position on EU negotiations in relation to headage payments for farmers in disadvantaged areas; his views of the rejection by the EU Commission of a proposed shift from headage payments to areas-based payments; and if he will make a statement on the matter. [17764/00]
49 Mr. M. Moynihan asked the Minister for Agriculture, Food and Rural Development the current position with regard to the negotiations taking place with the EU Commission on the proposed changeover from a per animal to an area based system in headage payments; and if he will make a statement on the matter. [17677/00]
I propose to take Questions Nos. 48 and 49 together.
The position is that a new area based compensatory allowance scheme is to be introduced with effect from 2001 as part of the outcome of the Agenda 2000 negotiations and in particular to protect the future of these payments in the context of WTO. As provided for in the Programme for Prosperity and Fairness, a task force representative of my Department and the main farming bodies was established to formulate proposals for a new scheme and to ensure an orderly transition. The task force met on a number of occasions and having considered a range of options the group recommended a scheme which would involve a payment per hectare linked to the type of livestock on the holding. The proposals envisaged a one hectare payment for each livestock unit. I announced details of the proposed scheme, including an increase in the overall headage grant limit from £4,000 to £5,000 on 29 May last. I also announced a £120 million increase in the overall allocation of money for disadvantaged area payments for the period 2000-06. The allocation for sheep headage would almost double to £40 million annually.
At a recent meeting with officials of my Department, the European Commission was not satisfied with aspects of the scheme being proposed mainly on the grounds that it did not represent a clear shift from headage related payments to area related payments. The fact that each livestock unit would attract one hectare payment was seen as continuing the link to production.
The task now is to devise a scheme which is best suited to our requirements and which meets with Commission approval. Earlier this week, I personally raised the issue with Commissioner Fischler and had direct consultations with him on the matter when I attended the EU Farm Council meeting in Luxembourg. My officials are in continuing contact with the Commission with a view to devising an alternative proposal. Further consultation is also taking place with the farming bodies with a view to formulating such a scheme.
