Vol. 529 No. 1
432 Mr. Penrose asked the Minister for Agriculture, Food and Rural Development if a person who has been a participant in the early retirement scheme from farming, whose lease is now terminated and who wishes to renew same will have to comply with the old enlargement clause which is no longer applicable for new applicants for participation in the scheme; and if he will make a statement on the matter. [2283/01]
The previous scheme of early retirement from farming was introduced in implementation of Council Regulation (EEC) 2079/92 and this regulation specifies that a hold ing transferred by a retiring farmer must be enlarged. A participant in that scheme continues to be bound by its terms and conditions, including the enlargement rule. The new scheme which commenced on 27 November 2000 was introduced in implementation of Council Regulation (EC) 1257/1999 and it is not possible for participants to transfer their undertakings from one scheme to the other.
433 Mr. Penrose asked the Minister for Agriculture, Food and Rural Development if the reduction in early retirement scheme pension to farmers, which came about as a result of a difference arising from the transition to the euro, will be rectified by appropriate compensation for this difference; and if he will make a statement on the matter. [2308/01]
The rate of pension paid under the previous scheme of early retirement from farming was expressed in ECUs. The revaluation of the Irish pound on the introduction of the euro in January 1999 resulted in a reduction of some 5.05% in the rate of pension. While the reduction in the rate is permanent, the Council of Ministers approved a three year scheme of compensation. During 2000, full compensation was paid to all participants in the scheme whose payments had been reduced during 1999.
On 12 January 2001, the European Commission gave approval for payment of compensation in respect of reductions in payments during 2000. Compensation is set at 75% of the loss incurred and the total amount approved for Ireland is £2.63 million. One third of this will be funded by the EU and the remainder from the Exchequer. Arrangements for payment are being put in place following receipt of the Commission's approval.
The compensation scheme provides for a third payment in respect of reductions in payments during 2001 and approval for this payment will be sought from the European Commission in due course.
