Dáil Éireann díospóireacht -
Tuesday, 5 Dec 2000

Vol. 527 No. 3

Written Answers. - Grant Payments.

Willie Penrose

Ceist:

146 Mr. Penrose asked the Minister for Agriculture, Food and Rural Development if he will take steps to ensure that the application form submitted under area aid, and the application for premiums, by a person (details supplied) in County Longford is considered; that the relevant amount would be paid to him as a matter or urgency; and if he will make a statement on the matter. [28257/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The 2000 area aid application for the person named has been fully processed with no outstanding errors.

The person named was paid his full entitlement of £360 under the 2000 cattle headage scheme and the 60% advance of £353.73 under the 2000 suckler cow premium scheme on 16 November 2000. Neither payment was the subject of a penalty.

Michael Creed

Ceist:

147 Mr. Creed asked the Minister for Agriculture, Food and Rural Development when a person (details supplied) in County Cork will receive a suckler cow grant. [28303/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The person named applied for premium on 12 cows and two heifers under the 2000 suckler cow premium scheme on 12 May 2000.

Under the regulations the number of grants payable is determined by the number of quota rights held by the applicant for the year in question. The person named holds 12 quota rights and consequently the maximum premium payment entitlement under the scheme is 12. However, in order to finalise processing my Department requires certification in relation to the milk-quota held. This has not been furnished to date. My Department will contact the person in question directly in order to resolve this matter.

Michael Ring

Ceist:

148 Mr. Ring asked the Minister for Agriculture, Food and Rural Development if the Government have come to an agreement with the farming organisations regarding the headage change-over payments to an area basis; and the plans he has to compensate hill sheep farmers. [28304/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The position is that under the Agenda 2000 agreement headage grants in the disadvantaged areas are to move from a payment per animal to a payment per hectare basis. Under transitional arrangements the headage schemes as they have operated up to now will continue to apply for this year. A new area based scheme is to be introduced with effect from next year.

As provided for in the Programme for Prosperity and Fairness, PPF, a task force, representative of the Department and the social partner farm organisations, was established to formulate a new scheme. Following lengthy discussions the scheme agreed in July last and since approved by the European Commission provides for area related payments as follows:

More Severely Handicapped (lowland)

£70 per hectare up to 45 hectares.

Less Severely Handicapped (lowland)

£60 per hectare up to 45 hectares.

Mountain type land

£45 per hectare up to 60 hectares.

Where a farmer farms a combination of land categories he will be paid on lowland, more severely handicapped, first, lowland, less severely handicapped, next and the mountain grazings last.

If a farmer only has lowland, more severely handicapped, and/or lowland, less severely handicapped, his overall limit is 45 hectares. If he has a combination of lowland, more severely handicapped, and/or lowland, less severely handicapped, and some mountain type land, he will be paid on up to 45 hectares lowland and up to an extra 15 hectares of mountain subject to an overall limit of 60 hectares.

If a farmer only has mountain type land his overall limit is 60 hectares.

The Government has already committed some £360 million additional funding for the scheme over the period 2001-06. The new arrangements involve a cost of £180 million in 2001 representing an increase of about £60 million over the current scheme. There are no losers this year since the existing schemes remain in place under the transitional arrangements. It is estimated that the number of farmers qualifying for payment under the new area based scheme will rise from 90,000 currently to 109,000 in 2001. From 2001, some 81,000 farmers stand to gain about £66 million annually while 28,000 farmers will incur some losses. I have however negotiated a compensation package for losers under which 90% of losses will be made good in 2001, 80% in 2002 and 50% in 2003. Under these arrangements the average loss in 2001 will be about £32 rising to £64 in 2002.

I have asked my officials to carry out a review of the scheme to find an equitable long-term solution to the problem of reduced payments. As I indicated earlier, the average loss in 2001 for those farmers who stand to lose will be about £32. My immediate priority therefore is to concentrate on putting arrangements in place for delivery of the new area based system in 2001. I am anxious, however, to find an equitable solution to this issue and I would hope that a review can be carried out during the early part of next year.