Vol. 530 No. 6
173 Mrs. B. Moynihan-Cronin asked the Minister for Agriculture, Food and Rural Development when compensation payment will be made to those in receipt of farm retirement pension; and if he will make a statement on the matter. [4842/01]
Compensation for reductions incurred in 2000 is set at 75% and the European Commission gave approval on 12 January 2001 for payment. Arrangements have been made for payment and most of the participants who are entitled to compensation will receive it with their March payments. A small number whose cases have to be calculated individually will be paid in April.
The reduction in rates of pension arose from the introduction of the euro in January 1999. The rate of pension under the previous scheme of early retirement from farming was expressed in ECUs. The revaluation of the punt on the introduction of the euro 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. Compensation for losses during 2000 is set at 75%. 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.
