I thank the Senator for raising the matter. It is an issue about which I did not know very much until we got a full briefing from those involved. There is no point in me giving an answer about a matter where I do not know the answer: I do not know about next year's scheme.
On the other issue, I will make it my business to come back to the Senator directly. The payment of €75 as opposed to €150 was an issue. With the Minister, Deputy Coveney, I had the privilege of meeting those involved who put forward a very strong case and we understand where they came from. I cannot say any more about that or what will happen. We were properly briefed and they made their point very strongly. They are totally committed to wanting to farm these areas.
While I do not mean this as a dig at the Senator, the promise to increase from €75 to €150 was like many other promises the previous Minister made where he never told anyone where he would get the money, whether it was the AEOS or the natura scheme. There was never any indication of where the money would come from and it will need to be addressed in a different way.
I acknowledge the importance of the agri-environment schemes which are operated by my Department and the fact that Irish farmers have been successfully taking part in these schemes since 1994 when the first rural environmental protection scheme, REPS, was introduced. These schemes encourage farmers in their role as custodians of the countryside and participating farmers undertake to adopt farming practices in line with best environmental land management techniques. In doing so, they realise verifiable public goods in terms of conservation, landscape enhancement and protection of our biodiversity for the benefit of all society.
Since 2010, the agri-environment options scheme and the natura 2000 scheme, generally referred to as AEOS, builds on this fine tradition. This targeted scheme offers farmers a menu of environmental options to choose from and allows them to choose the best fit for their holding. Under the scheme farmers are paid to undertake actions which specifically target three environmental challenges, namely, halting the loss of biodiversity, contributing to the improvement of water quality and combating climate change.
The scheme was introduced last year and was very well received, with 8,482 applications approved. We reopened the scheme this year in very difficult financial circumstances and some 6,900 applications were received. We reopened the scheme because we are convinced that it will deliver recognised and verifiable environmental public goods which will go some way towards addressing the very serious challenges of sustainability and conservation. Nonetheless, the current difficult budgetary situation must be acknowledged and any requests for funding over and above what has already been announced must be viewed against what is affordable and possible. The request for an increase in the natura payment from €75 per hectare to €150 per hectare must be viewed in this context.
The natura 2000 scheme, as part of AEOS, specifically addresses the challenge of halting the loss of biodiversity in specially designated areas. Throughout Europe, natura lands are designated as a network of protected areas which protect both birds and habitats. In Ireland, it is the National Parks and Wildlife Service of the Department of Arts, Heritage and the Gaeltacht which designates the special areas of conservation and special protected areas which form part of this natura network. These designations are made under the birds and habitats directives which are legally binding.
As part of the designation process, a series of notifiable actions are developed for natura scheme lands which include a list of activities that may alter, destroy or interfere with the integrity of the site. Landowners receive formal notification that their lands have been designated and of any notifiable actions associated with the designation. Farmers who are in receipt of the single payment must, as part of cross-compliance, comply with these restrictions.
Farmers who join AEOS and have natura scheme land must commission a sustainable management plan from an environmentalist which sets out the appropriate farming practices compatible with the conservation of this land. They receive a payment of €75 per hectare under AEOS to cover the cost of having this sustainable management plan drawn up. Farmers must in any event farm in a way which is compatible with their natura scheme site, as required under single payment scheme rules but this plan gives them extra assurance and guidance in complying with the designation.
My predecessor in the previous Government gave a commitment to seek an increase from the European Commission to double the natura scheme payment. This was on foot of representations from the farm bodies that farmers in these areas were being particularly disadvantaged by the requirement to farm in a way which was not commercially viable, particularly on commonages where destocking had been required under the commonage framework plan. My Department submitted a request to the European Commission for such an increase. This increase, if applied to both AEOS 1 and 2, could have resulted in additional expenditure of up to €4 million per annum.
In view of the current budgetary circumstances, I felt that I had no option but to withdraw the request for an increase. The reality is that cuts are being felt across all sectors and while I am fully committed to supporting farmers, particularly those engaged in important environmental work, I must operate within the current very stringent fiscal constraints. The House will be aware that any extra funding would have to be found within the overall expenditure ceilings for my Department which are set out in the national recovery plan. The House will also be aware that the plan provides diminishing resources for my Department over the next three years and I have been critically examining every element of the Department's expenditure to ensure that maximum benefit is obtained for all available funding. It is already clear to me that significant savings will have to be achieved across a wide range of schemes and services in the Department's 2012 Vote so that expenditure can be kept within the limits available next year.
Having said that, I am aware that some farmers in natura scheme areas, particularly commonages, face real difficulties. For that reason, my Department will be co-operating with and assisting in any way possible the Department of Arts, Heritage and the Gaeltacht which is carrying out a review of the commonage framework plans. Since the plans were first introduced improvements have been noted on several commonages and the review will consider stocking rates with a view to increasing them where indicated by up-to-date conditions on the commonages.
As regards payments, some 8,500 farmers approved into AEOS 1 are due an estimated €32 million per year. The scheme, like all co-funded EU schemes, is subject to very stringent administrative checks under EU regulations. It has been my Department's experience, from EU audits of previous schemes, that such checks must be in place and must be carried out to the highest possible standard before any payments issue. Failure to adhere to and comply with these regulations could have very serious consequences and result in significant monetary fines.
My officials are carrying out these comprehensive checks at present. Many of the applications require re-digitisation or other issues must be resolved before valid and accountable payments can be made. I recognise that farmers wish to be paid as soon as possible and I have, therefore, enhanced the resources devoted to the AEOS in order to ensure that payments for the 2010 partial year element of the scheme will be made in August. In addition, these farmers will receive their payment for the full 2011 year towards the end of the year.
I reiterate my full and total commitment to protecting our environmental heritage and in compensating farmers engaged in this vital work. I have shown this commitment through the re-launch this year of the AEOS and through support for the review of the commonage framework plans. These are challenging times which mean that tough choices must be made. However, I assure the House I will continue to work to support these farmers in their role as stewards of the countryside.
