Brendan Smith
Ceist:9. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine when approvals will issue in respect of TAMS applications; and if he will make a statement on the matter. [55732/23]
Amharc ar fhreagraThursday, 14 December 2023
Ceisteanna (9)
Freagraí ó Béal (6 píosaí cainte)
I return to the same subject, by and large. The importance of TAMS, is illustrated by the Minister's statement that 3,000 applications have been received under tranche 2. Again I appeal for the timeline to be met as much as is possible because when farmers plan to invest, they need to be given every possible assistance.
With regard to the dribble bar, one of the other points which farmers in my territory made to me was that, apart from the cost, there might be some argument about the better result from the machinery where the land is not fit to carry machinery that is not a dribble bar. The heavier machinery is not suitable for some of that land.
I thank Deputy Smith for his question. On the dribble bar, that is something I will also be considering in the mix on the emissions aspect, but also there is the usability of it. Taking that into account is something I will be considering in the round.
On the timelines, as the Deputy will know, we have a budget of €370 million over the period from this year to 2027. Tranche 1 of TAMS 3 closed on 30 June 2023, with 8,241 applications received. Overall, the scheme has proved very popular, with an unprecedented level of applications received which was almost four times the average number received per tranche under TAMS 2, or under any tranche in the previous TAMS scheme.
The solar capital investment scheme opened for applications in February 2023, with the remaining ten measures opening on a phased basis. The final measure was the women farmers capital investment scheme which opened for applications in June 2023. That is a new category with 60% grant aid to encourage and address the imbalance we see at farm gate level in the number of female farmers and female herd and farm owners.
Tranche 2 of TAMS 3 will close this Friday at 5 p.m., based on a decision I made yesterday. Tranche 3 of the scheme will open on Monday and run until Friday, 12 April 2024. This will ensure applications received since the current tranche opened in July can be proceeded with as efficiently as possible. I made the decision to close tomorrow so we can get on with processing applications and ensure those in the tranche who need work to be carried out in a timely manner next year can be prioritised where necessary to get on with their work.
Applications received across all measures in tranche 1 are currently being processed. Once the initial processing is completed, all applications will be subject to ranking and the applicants will be informed. Yesterday, I published, in the comprehensive statement I made, the schedule according to which each category will get approval.
Unfortunately, both public and private providers have been hit by rising costs in recent years, particularly since Mr. Putin's evil war against Ukraine was launched. I wish to raise the reference costs regarding the scheme and the investment. It is outside the remit of the Minister but there is much concern among farmers over the changes and the interpretations of rules recently introduced by Revenue. This is resulting in additional costs for farmers because, in some instances, where they hoped to get a VAT reclaim on milk bulk tanks, slurry scrapers or milking equipment, it is no longer available. Therefore, it is important that the reference costs reflect the reality of investment. Unfortunately, there has been an escalation in costs across all sectors, and the farming and construction communities are not immune from this.
The rising costs have been a genuine issue over recent years. There have been adjustments at different points to change the reference costs for TAMS. Thankfully, over the past few months, we have seen an easing of inflation affecting construction, machinery and materials. There were unprecedented increases in the year to 18 months before that. We continue to monitor this and adjust on a phased basis as we go forward from tranche to tranche.
The Deputy raised the issue of reclaimable VAT for mobile equipment. That is a matter for Revenue to interpret but it is an important issue for farmers making an investment decision. I have made my staff available to Revenue to be helpful in any way we can in providing practical information on this. I accept this is an important issue, but it is outside my remit. It is within the remit of Revenue.
I sincerely hope Revenue revisits this very important matter.
I am not clear on whether there are still young farmer and woman farmer cohorts within the application process. It is important that these cohorts of the overall farming community be supported.
Will the Department issue detailed data on what is necessary to get a priority classification?
There is a young farmer category. Under this, a young farmer will get a grant rate of 60% as opposed to 40%, which is the standard. Also, for the first time ever, I have included a female farmer category, whereby a female farmer can get a grant rate of 60%. We need to send out a definite message across the sector that we want to see women taking their rightful place as the heads of farms. The measure is a deliberate one to encourage and facilitate this.
On the prioritisation, we operated a system over the past couple of months whereby people who needed priority could come forward and explain their need for it and whereby their cases for the prioritisation of their applications could be considered at local office level. We will take the same approach for people who need this next year.
I have outlined the timetable. Approvals have started. Between now and next April, approvals will be issued across all the categories. This will meet the needs of the vast majority of farmers. However, those who need approval urgently can contact their local office and have their cases dealt with there.
Question No. 10 taken with Written Answers.