Paudge Connolly (Cavan-Monaghan, Independent)

I thank the Minister for her reply. I note she said that she has not yet taken a decision on the future of the scheme. I also note she was quoted as saying she was putting forward the idea that the scheme had run its course and that she would listen to what people have to say about this. I hope that was not a case of her stirring the pot and that she will listen to what farmers have to say about this scheme.

The message I have got from farmers is that scheme was innovative when introduced and that it was a good scheme. Over the 11 years it hasbeen in place, approximately 12,000 farmers availed of it. In 2001, 836 people applied for the scheme but the number who applied for it in 2004 decreased to 321. The main question is why was that the case and we must get to the bottom of that.

We need a root and branch review, rather than a scrapping, of the early retirement scheme, including increasing the income limit which is set at €25,500. That income limit was fair when the scheme was introduced 11 years ago but in today's terms a farmer would not gain any of the benefits applying in this area by participating in this scheme as one of the transferees. Such a farmer would lose stamp duty benefits etc. I ask that this aspect be reviewed.

We must respect the right of a farmer to decide when he or she wants to retire. We must also respect the Lisbon competitiveness agreement. These are elements we cannot ignore. We must balance those with having in place a fair early retirement scheme which will provide retired farmers with an income on which they can live. I am sure the Minister would agree it is not correct not to index link pensions. An income of €13,500 was probably in order 11 years ago but one need only reflect on a farmer retiring on a salary of €13,500 and what that income would buy in five or six years' time. That aspect must be examined.

There are key barriers to farmers taking up this scheme, including that the pension is not index-linked and the need to increase the income limits. We must also encourage young people to participate in farming — 12% of farmers are under the age of 35 and that is not a good basis for going forward.

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