Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

This relates to DAS. In respect of what happened last year with the scheme, members will remember we had quite a long debate in this committee about how we would make the savings because I had asked people for their feedback. We had a closed-door session, which was very useful in terms of getting people's feedback. I made it clear that we had to make the savings so I wanted people's input as to how we might do that. We had an Estimate of €190 million to spend on DAS last year. We ended up spending €206 million. We were trying to be clever about it and it did not work out so we learned some lessons from that for this year. We had to bring the figure down. Initially, we were asked this year to make sure we got it down to €190 million. I increased that to €195 million. Even though the Estimate last year was €190 million and is €195 million this year, €206 million was spent last year and €195 million will be spent this year because I am pretty confident we will get our savings this year.

The Deputy knows how we are getting those savings. They relate to ensuring people keep animals for a certain number of months per year and that there is a basic stocking rate, which is still low but is slightly higher than it used to be. Certain animals and conditions were taken out of DAS payments that would not qualify. Again, this is all about trying to ensure people who are actively farming on hillsides and in disadvantaged areas are prioritised and do not have any reduction. We have made other savings as well in DAS in terms of the actual area that people can apply for. That reduction on lowland DAS areas will make savings this year but, again, we have maintained full payments for people who are essentially farming on mountains because they are the most disadvantaged farmers. I am pretty confident we will get down to our target figure of €195 million this year.

It is hoped this will mean we will not have to make any more cuts but when I am asked to make another €30 million of savings in the upcoming budget, which I have been asked to do, there are only a few schemes left that are big expenditure schemes. These are REPS and DAS. Luckily, REPS is naturally making savings because the number of farmers in REPS is falling all the time. I do not want to make any solid commitments. I want to protect farmers in disadvantaged areas as best I can in the upcoming budget, but we must wait and see what the arithmetic says.