Mary Coughlan (Donegal South West, Fianna Fail)

I have not taken a decision on the future of the early retirement scheme. The EU Council regulation covering the current scheme will expire in December 2006. The Council regulation on rural development for the period 2007 to 2013 again includes provision for member states to operate early retirement measures. No decisions have yet been taken regarding the schemes to be operated in Ireland under this regulation.

The early retirement scheme was introduced as one of a number of instruments to improve the age structure of Irish farming and improve the viability of farm holdings. From this point of view, the first scheme from 1994 to 1999 was successful. However, take-up has fallen short of expectations, and an expenditure review carried out in my Department in 2004 raised a number of questions about the effectiveness of the scheme in achieving its objectives. Structural reform is still a priority both at home and at European level, and we still need to provide opportunities for young farmers. In framing proposals for the next rural development round we need to consider how best to achieve those results in light of the funding and the options that are available.

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