Dáil Éireann díospóireacht -
Thursday, 14 Feb 2002

Vol. 548 No. 4

Written Answers. - Rural Environment Protection Scheme.

Cecilia Keaveney

Ceist:

18 Cecilia Keaveney asked the Minister for Agriculture, Food and Rural Development the measures the Government has introduced since 1997 by way of special schemes and tax incentives to promote environmental farming; and if he will make a statement on the matter. [4265/02]

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

Tax allowances for expenditure in necessary pollution control work, notably the expenditure limit under the accelerated rate of capital allowance which was increased to €62,000, are a matter for the Minister for Finance. Under the aegis of my Department the Government has introduced a number of other measures since 1997 to promote environmental farming. Of these, the most important are the rural environment protection scheme, the scheme of grant aid for the development of the organic sector and the scheme of investment aid for farm waste management.

The rural environment protection scheme was first introduced in June 1994 and the successor scheme currently in operation was introduced in November 2000. The objectives of REPS include establishing farming practices and production methods that reflect the need for environmental conservation and protection, protecting wildlife habitats and endangered species of flora and fauna, and producing quality food in an extensive and environmentally friendly manner. REPS is 75% co-funded by the European Union, and to date a total of €994.5 million has been paid to participants. Payments since 1997 account for €884.3 million of the total.

Organic farming is acknowledged to be exceptionally sensitive to the well-being of the environment and there is special provision in REPS to support this sector. Organic farmers in REPS can avail of a supplementary measure which is designed to encourage farmers to respond to the market demand for organically produced food. An organic farmer in REPS can receive up to €13,280 a year which includes payment of the basic measure, while a holding is in conversion to full organic status. When full organic status is obtained, such a farmer may receive some €9,680 which includes payment of the basic measure.

Further support for this area is available under the scheme of grant aid for the development of the organic sector introduced last year. The Government have made some €8 million available for this scheme under the regional operational programmes for the Border, midland and western region and the south and east region. It provides grant assistance for both on-farm and off-farm investment in equipment and facilities for preparation, grading, packing, storage and distribution of organic produce. For on-farm investment projects, grant assistance is available up to a maximum of about €50,000. For off-farm investment projects, grant aid up to a maximum of about €250,000 is available.

Under the National Development Plan 2000-2006, provision was made for a scheme of farm waste management. A significant level of funding amounting to some €230 million has been allocated for this measure, accounting in fact for almost 80% of the total available under all the on-farm investment schemes. Eligible investments under this scheme include waste storage facilities, animal housing – sheep and bovines, silage storage facilities, associated facilities and mobile equipment for applications of farm wastes. Grant aid of between 20% and 40% is available, subject to certain criteria. It is a condition of this scheme that all applicants undertake to apply the principles of good farming practice in their operations. The new farm waste management scheme replaced the national scheme for the control of farm pollution which operated from June 1999 and which provided grant aid for similar types of investment.