Willie Penrose (Westmeath, Labour)

I wish to share time with Deputies Wall and Paul McGrath. I thank the Ceann Comhairle for allowing me to raise this matter which is extremely important to so many livestock farmers throughout the country. It is particularly important in the midlands and in Westmeath, Longford and the adjacent counties.

The problem of which the Minister of State ought to be aware revolves around the proposed €80 million penalty that Irish farmers face in respect of their 2004 premium payments from the overshoot that occurred at the end of 2004 and which clearly arose from the change to full decoupling, which I supported and which came into effect in January 2005. Ireland made the decision to opt for full decoupling in October 2004, and it was as clear as the nose on one's face that livestock farmers would increase their special beef premium applications under the 2004 premium scheme. This put the cut off date at 31 December 2004, and with such a small window of opportunity to make the applications, the overshoot duly took place.

The Minister of State's Department estimates that the special beef premium overshoot will be 27% on the nine month special beef premium and 23% on the 21 month special beef premium. The cutback as a result of the overshoot will be imposed on livestock farmers who applied for more than 25 animals under the 2004 scheme. In financial terms, individual farmers are facing cutbacks ranging from €53 to €78 per animal, including extensification premium. These penalties will, in many cases, exceed the net margin per animal which a farmer might make and, therefore, effectively wipe out any anticipated profit for beef enterprises which are already under fierce financial strain and pressure. Why should people who applied for, say, 70 animals in 2002, 2003 or 2004 have a financial penalty imposed on them as a result of the special beef premium overshoot?

I have been informed that when Ireland opted for full decoupling, the former Agriculture Commissioner, Franz Fischler, made it clear that no country or individual farmer would lose out from the changes to full decoupling. What efforts have been made by the Minister of State and his officials on behalf of these farmers to ensure they are not penalised or that they do not lose out in any way?

The average farmer is likely to lose up to €4,000 per annum. I know a young farmer in County Westmeath who has tried to increase his herd for the past four years. He leased a shed and the cut in his case will be approximately €6,000. This is the thanks he is getting for trying to be progressive, for leasing sheds and buying additional land. It is a devastating blow to this bright, young, energetic and go-ahead farmer and to many more who are in a similar position throughout Westmeath, Longford and beyond.

What solution will the Minister of State put in place to deal with the overshoot problems to ensure that approximately 30,000 farmers will not be penalised? Has he discussed the problem with the new Agriculture Commissioner and, if so, how often? What was the outcome? Was it in line with the commitment given by Commissioner Franz Fischler that none of these farmers would lose out from a financial perspective? Will it be thrashed out with the EU Agriculture Commissioner, or will the Minister of State bring forward his own Estimate to ensure farmers who are already on their knees will not be punished further? I call on the Minister of State to take urgent action now in this regard.

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