Mary Coughlan (Donegal South West, Fianna Fail)

The issue is before the European Commission. It is my intention to activate the scheme from the beginning of next year when applications will be sought. In the period prior to Commission approval being given, those preparing to develop new facilities should make appropriate preparations, for example, securing the necessary planning permissions.

The derogation would be important for approximately 10,000 dairy farmers. It was on that basis that the Department initiated discussions with the Commission prior to the initial action plan being agreed. I am anxious to deal with this issue in its entirety as quickly as possible. While we can revisit history and what has been done since 1992, recriminations will not sort out the issue. No side, whether the farming fraternity, Government Departments or political parties, was eager to progress the issue. Hindsight, as the Deputy will be aware, is 20/20. The grant aid has been introduced in recognition that the directive will have implications for farmers. I am delighted the scheme we have proposed to the Commission gives greater recognition to small farmers. The directive's implications are as important for small farmers as for larger farmers, a fact reflected in the decision to increase the investment ceiling to €120,000. The Department has tried to strike a balance between the interests of small and large farmers.

On the classification of the scheme, I agree the use of the word "waste" is counter-productive. Pig and poultry manure is regarded as an asset rather than a waste and on that basis the Department is investigating new technologies and methodologies for dealing with it. This will also involve examining further proposals to support the sector.

The outcome of the recent Spanish court case is being evaluated. However, an initial examination indicates that it does not have major implications for Ireland. That said, the matter has not been definitively addressed and the Department is continuing to examine its implications.

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