Vol. 554 No. 5
240 Mr. Wall asked the Minister for Agriculture and Food if he will investigate a process of returning the compliance costs of the different schemes to the farming applicants; his proposals to reduce the red tape involved which is creating these costs; and if he will make a statement on the matter. [15448/02]
As far as payment of compliance costs to farmers is concerned, I am bound by the EU provisions on state aids as to what can be achieved in that regard but I am committed to ensuring that such costs are kept to a minimum. My Department's payment system is one of the most efficient in the European Union. Notwithstanding this, application procedures continue to be subject to review with a view to simplification, subject to EU accountability requirements.
I am aware of the difficulties faced by some in completing the paperwork required under many of the schemes and as part of this ongoing review process a protocol on direct payments was agreed with farming organisations in 2000. This has been carried forward into my Department's Customer Service Action Plan 2001-2004, which includes commitments to the use of clear and comprehensible language in forms and information leaflets, the establishment of regional customer panels and the development of electronic data to reduce form filling.
Payments to farmers under the rural environmental protection scheme, REPS, are calculated to cover the additional costs and reductions in income that arise when a farmer follows the more extensive and environmentally friendly farming practices that participation in the scheme requires. In April this year I announced some improvements in the early retirement scheme and I am currently considering some changes in the operational requirements of REPS. However, REPS and the scheme of early retirement from farming are two of the four measures included in Ireland's CAP Rural Development Plan 2000-2006, which was approved by the EU Commission. The plan also incorporates the compensatory allowances and forestry measures. Any changes in those conditions of the schemes that are included in the rural development plan would require formal amendment of the plan at EU level.
Subject to EU requirements and in consultation with its customers, my Department will continue to simplify forms and application procedures generally.
241 Mr. Wall asked the Minister for Agriculture and Food his plans to index link the premiums being paid to beef farmers in view of present difficulties being encountered by the farming industry. [15449/02]
The premiums paid to beef producers are part of the common organisation of the market for beef and veal. The current arrangements for these premiums were agreed as part of the Agenda 2000 agreement, which provided for the introduction of new premiums and an increase in the existing premiums over a three year period from 2000 to 2002 in return for a 20% reduction in institutional prices over the same period. There are no proposals for these prices to be index linked.
As a result of this agreement, the maximum premiums payable on steers submitted for the special beef premium this year are €270 higher than in 1999. This is equivalent to an increase of 27c/lb for all steers slaughtered in Ireland. The increase in the premiums payable on suckler cows amounted to €171 per head. In addition, part of the national envelope, worth €20 million per annum, has been used to top up the suckler cow premium in respect of replacement suckler cows and up to 15% of dry heifers submitted for the suckler cow premium. Premiums were introduced for heifers for the first time under Agenda 2000 through the slaughter premium which is worth €80 per head this year. In addition, one third of the national envelope amounting to approximately €10 million is used to top up the slaughter premium on beef heifers bringing the total premium on beef heifers to over €100 per head this year. Furthermore, the payments of the compensatory allowances in the disadvantaged areas were €25 million higher this year than in 1999.
The value of these premiums has to be seen in the context of developments in cattle prices over the last three years. Current steer prices, at 234c/kg or 84p/lb, are broadly at the same level as in late September 1999.
