Dáil Éireann díospóireacht -
Wednesday, 4 Oct 2000

Vol. 523 No. 2

Written Answers. - Social Welfare Code.

Michael Ring

Ceist:

177 Mr. Ring asked the Minister for Social, Community and Family Affairs if he will have considerations made into treating the forestry premium payment similar to the REP scheme payment for social welfare assessment purposes in respect of the forthcoming Budget. [20861/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

Under special arrangements introduced in 1998, the first £2,000 of payments under the rural environment protection scheme is disregarded, with the balance being assessed at 50% for meanstested social assistance purposes. In addition, any costs incurred by farmers in implementing the agri-environmental plan, as provided for under REPS, are also offset against other income from farming activities. These arrangements, which apply to farmers in receipt of unemployment assistance, pre-retirement allowance and the old age non-contributory pension, were extended to the farm assist scheme in early 1999.

The above disregards also apply to payments arising under the scheme of compensation for compliance with special areas of conservation conditions, which is operated by the Department of Arts, Heritage, Gaeltacht and the Islands.

These revised arrangements provide low income farmers with a significant financial incentive to participate in the REPS and SAC schemes, thereby benefiting the environment by the improvement of the sustainability of agriculture through the preservation and enhancement of the rural environment.

The forest premium scheme is designed to replace farm income which is foregone through the change in the use of the land from ordinary farming activities to forestry. Unlike REPS and compensation payments under SACs, which compensate farmers for the material and work involved in complying with the agri-environmental plans or SAC conditions, payments under the farm forest premium scheme would equate to other forms of farm income. Accordingly, payments under the forest premium scheme are treated in the same way as other forms of farm income and are assessable for means-tested social welfare purposes, for example, income from ordinary farm activities, headage payments, etc.

Following the introduction of the farm assist scheme last year, farm income, including payments under the forest premium scheme, is now assessed on a more favourable basis. This was 80% when the scheme was introduced and has now been to reduced to 70% with effect from the start of October.

In the circumstances, there are no plans to extend the current disregards applying to REPS payments to payments under the forest premium scheme for meanstested social welfare purposes.