Dáil Éireann Debate, Wednesday - 24 March 2004
5 Mr. McHugh asked the Minister for Agriculture and Food the measures he proposes to take to assist farmers financially in providing facilities to comply with the proposed nitrates directive in the event of the directive being implemented; and if he will make a statement on the matter. [9396/04]
Amharc ar fhreagraSubstantial financial aid is being made available to farmers to facilitate compliance with the nitrates directive. In Sustaining Progress, the Government stated: "Recognising the importance of the nitrates directive and its impact on certain farmers, a number of initiatives shall be taken in the context of optimising the use of available EU and national budgetary resources". These initiatives included a review of REPS with higher payment rates, and changes to the terms and conditions of the farm waste management scheme and the dairy hygiene scheme, in particular increasing the income and eligible investment ceilings.
Proposals for REPS III, for example, included an average 28% increase in payments. They were forwarded to the European Commission for approval in early December last. We hope to get a decision fairly shortly on that but it is a matter for the Commission. I am keeping up the maximum pressure on it but the process going through the Commission is very slow. We have provided funding of €260 million, an increase of €70 million on last year which represents a 40% increase. That has been provided for REPS III in my Department's Estimates for 2004.
Earlier this year I secured approval from the EU to proceed with substantial improvements to both the farm waste management and the dairy hygiene schemes, with effect from January of this year. The allocations were increased by 58% and 67% respectively. That was to facilitate farmers in complying with storage facilities and the implications of the nitrates directive. The allocations were increased substantially and the new schemes incorporate a number of major changes. For example, the ceiling for eligibility under the schemes has been raised from 200 to 450 income units. This change will mean that the vast majority of farmers will now be able to avail of grant aid. The investment ceilings have also been raised from €50,000 to €75,000 in the case of farm waste management works, and from €31,000 to €50,000 in the case of dairy hygiene works.
Furthermore, a standard grant rate of 40% will now apply, twice that which was available to many farmers previously. In addition, increases have been applied to the standard costings used to calculate grant aid. Funding of €33.5 million is available for these schemes in my Department's 2004 Estimates as compared with €21.1 million in the 2003 Estimates. The young farmer installation aid was increased by 180%.
I thank the Minister for the reply but it gives no comfort to farmers who are already on a shoestring and who will now be required to borrow further to meet the proposals contained in the draft nitrates action programme. Will the Minister agree that the dates proposed for the prohibition on the application of fertilisers to lands do not take account of the Irish climate? It appears the dates are proposed willy-nilly and are merely put into the draft action programme to satisfy the appetite of bureaucrats somewhere. In implementing EU directives account needs to be taken of Irish conditions, and the peculiar situation relating to Ireland's climate is not taken into account in this instance. For example, the draft action programme proposes that no manure or slurry be spread on lands from 1 October to 15 January but we often get good weather in those months while in July we could have downpours. Strict dates will also have the effect of opening the sluice gates on one specific day, and that is not a good idea.
The draft programme further requires minimal animal manure storage and in the case of the west, which I am concerned about, the minimal storage requirement is 20 weeks. Will the Minister agree that this requirement, which is up to 24 weeks in the north-west and 20 weeks in the west, is unaffordable and the cost cannot be met by farmers under their present income? In the knowledge that an unbearable financial burden will be imposed on farmers, will the Minister look again at this matter with a view to changing the measures contained in the draft programme or else make sure that adequate financial assistance is made available in the event of those stringent measures being imposed on Irish farmers?
I reiterate that substantial and generous grant aid has been available, and I like the Deputy's idea of a shoestring. A total of €260 million has been allocated to the REPS. That is a 40% increase, and the rates of REPS have been increased by 28%. The farm waste management scheme payments have been increased by 58%, the dairy hygiene scheme payments by 67% and the young farmer installation aid scheme payments by 180%. That is very generous and takes into account the additional commitments needed under the nitrates directive. Section 21 of the Finance Bill extends the special scheme of capital allowances for expenditure incurred on the construction of facilities for pollution control, subject to the enactment of the necessary legislation in the Finance Bill 2004. That has virtually gone through all the systems and is to be signed by the President.
The scheme also allows total expenditure on or after 6 April on necessary measures for farm pollution control to be written off as a tax allowance over seven years. This allowance is subject to a maximum write-off in any one year of €31,743. In all the circumstances, therefore, very generous improvements and concessions have been made to the farming community to make sure that good farming practice takes place.
Farmers signed up to good farming practice in 1996 and those storage periods and requirements for storage are contained in the Code of Good Agricultural Practice to Protect Waters from Pollution by Nitrates, a great booklet which was published in July 1996 — the Deputy might wish to read it in his leisure time. It was from the Department of the Environment. There is a nice mugshot of——
The Wexford twins.
Yes, Deputy Howlin and the former Minister, Ivan Yates, both of whom are from Wexford.
The Minister is missing the point of my question. I am talking about a proposed action programme which has not yet come into being. The Minister cannot have made financial provision for that programme when it is not yet in place. If the measures remain as stringent as they are proposed, will the Minister make financial assistance available to farmers to help them implement those measures?
In line with good planning and practice by me in the Department we introduced those improvements in anticipation of the nitrates directive coming into effect.
The Minister would want to visit the farms in the west and see the storage facilities.
