Mary Coughlan (Donegal South West, Fianna Fail)

This has been an issue of considerable debate over the past few years. Macra na Feirme has been anxious to increase installation aid. It is an issue for review and consideration. I am concerned about the early retirement scheme. It is part of the rural development package and we have to see how much money will be made available for the next tranche of EU funding. However, we are trying to encourage most people to stay in employment until they reach 65, yet at the same time we are trying to encourage others to transfer land to allow younger people into farming. We need to develop a partnership approach where young people can be encouraged to take up farming while at the same time leaving 50 to 55 year old farmers in a position to farm adequately.

The early retirement scheme is driving people crazy because it is not index linked, nor is any other scheme in Europe. When people get an entitlement to social welfare, they often do not realise that they must advise the Department of their eligibility. There are also issues with overpayments and so on. Early retirement was very important when self-employed people did not pay PRSI and did not pay into an adequate pension scheme. I am anxious that farmers get involved in private pension schemes as well as paying a PRSI contribution. We will have to look at this, although not in the short term because a new scheme is being introduced.

I do not know if we are doing the right thing by encouraging early retirement because that discourages people who are active and who might change their minds in a few years time. At the same time, we want to encourage young people to be part of a farming enterprise. We have considered partnerships with regard to milk production and they seem to work well. Perhaps we should look at the issue that way and reflect it in some of our taxation policies.

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