My role in the South Kerry Development Partnership Limited is to deliver the farmers enterprise assistance initiative scheme launched on 11 November 1999 by Deputy O'Donoghue. Farm incomes in 1996 in the south Kerry area were more aligned to those in the west than in the east. It was a pocket of County Kerry where farm incomes were very low. In 1996 the average income was between £1,000 and £4,000. Between 2001 and 2006, I contacted 800 farmers in the area to outline the benefits of this and other schemes as part of my work under the social inclusion programme funded by Pobal.
The farmers enterprise assistance initiative is a six-year back-to-work allowance for farmers. Farmers on farm assist prior to 1996 were not in a position to join the area enterprise back-to-work schemes. Through the work of this committee, they became eligible to join. Through the pilot programme, 56 farmers are on the scheme in south Kerry. The Department of Social and Family Affairs has informed us that no other part of the country has any farmers on this scheme. The main bulk joined in the first three years of the programme. Later, numbers began to tail off as the Department requested us to stop taking on new entrants. We negotiated with the Department to secure six more places.
The scheme has been successful for many of its participants. For example, one farmer who had 20 suckler cows but was not in REPS joined the scheme and began a stonework business and purchased a van. Since then he has joined REPS, moved his herd number to 27 cows and is now part-time farming with his new business. The farmer informed me that his daughters would not have gone to college if not for this scheme.
Mr. James McCarthy, who has accompanied the delegation, has 12 suckler cows and has gone into organic vegetable production which he sells to the Milltown mart. From a bachelor's point of view, he enjoys the social aspects of the scheme as well as the extra income. With rural isolation becoming more of an issue, this type of scheme is very important.
Another farmer, a married man with four children, had six cows and 180 ewes. He was a participant in a community employment scheme. When it was wound up he moved on to the farmers enterprise assistance initiative. In rural areas, PAYE employment is hard to get, so this was an ideal route to employment for this farmer. He subsequently got a full-time job, his family continue the business and he and his wife run the farm.
The partnership scheme continues the culture of self-employment which we believe is the new way people will generate incomes in rural areas. The scheme has reduced dependency on State supports and fosters a culture of self-employment. It gives options for farmers when they are asked to leave a community employment scheme. The options for farmers are limited. PAYE employment, community employment and rural social schemes are either full or limited in time and income. This programme is not limited in time or income, allowing a farmer to progress in employment.
With the Department of Social and Family Affairs, South Kerry Development Partnership has invested huge resources in the scheme in terms of my time, the enterprise officer's staff time, grant aid we provide under the local development and social inclusion programme, the Leader programme and the Accel programme. The review carried out by the Department of Social and Family Affairs indicated that the scheme was an excellent measure in combating rural poverty. Over 70% of farmers have been successful. The programme is cost effective. Participants have moved from receiving State aid to paying tax and making pension contributions. The scheme has allowed farm families to continue their agricultural business. South Kerry Development Partnership believes it is very important that farmers do not walk away from their farms and that, with their new business, they continue in farming. The report recommended that the scheme be extended.
On further analysis by the Department, of the first 23 people who finished the programme, 12 are still in business, two are participating in the rural social scheme, one has a full-time job, two have passed away, three have not returned to the farm assist programme, while three have. The total welfare saving over the six years is €159,490. That sum can be multiplied to include the figure of 56. It must be remembered that the savings are ongoing.
On the position of farmers in south Kerry, 350 could start if the scheme was available. Farmers participating in the farm assist scheme do not qualify for the newly launched community service programme. A total of 163 farmers are participating in the rural social scheme, all of whom we anticipate will have to leave it at some stage to allow others to join, even though they have no clear progression route. Approximately 100 or more farmers participating in the community employment scheme will have to leave that scheme also.
The IDA is not in a position to create employment in south Kerry. As members are aware, the building industry is declining. In some parts of south Kerry 30% of the workforce are engaged in the primary agriculture sector. The national average is 6%. Members will understand, therefore, the difficulties we face.
South Kerry Development Partnership is delighted with the outcome of the review. It strongly supports the extension of the programme in south Kerry. It acknowledges the dedication of the participating farmers, the Department of Social and Family Affairs in particular, and all other agencies which supported the pilot programme.
I thank members for their time.