Mr. Paul Savage:

The Deputy makes a fair point and we should have consistency across the different schemes we are implementing, whether they are in Pillar 1 or Pillar 2. In the other layer being introduced in the ecoschemes, we have coherence and we try to build gradually on the baseline for what we are trying to achieve environmentally in Pillar 2. There should be coherence and we will try to ensure we strike a balance in this area.

The eligible area is also being looked at in the negotiations and it can be dealt with in the overall discussion, taking into account how we reconcile it with the environmental schemes. We do not know what the scheme will look like exactly, but we hope to determine the possibilities from the SWOT process and the needs assessment which we will carry out in the next number of months, as well as from the public consultation process.

Deputy Fitzmaurice asked about young farmers and about the possibility of a comprehensive package to address the decline in this area. One of the driving factors behind the Commission's proposals was the need to ensure generational renewal. This was a feature of the previous CAP and is in the current reform package. There has been an attempt to be coherent about what we are doing in Pillar 1 and Pillar 2, with top-up payments for young farmers in Pillar 1 and additional investment support ceilings in Pillar 2. Everybody takes on board the need to ensure generational renewal, and every effort will be made in the course of these discussions to maximise what we can do within the regulations to encourage young farmer participation.

The Deputy also asked about incentives for older farmers with an early retirement scheme. There is no provision for this in the regulation but there is a reference to national retirement age.