Mary Coughlan (Donegal South West, Fianna Fail)

The revised farm waste management scheme will be introduced by my Department as soon as the required EU state aid approval has been received. A formal application seeking Commission approval for the revised scheme was submitted on 30 September last. The application has been the subject of ongoing negotiations between the Commission and my Department in the intervening period. A number of outstanding issues remain, in particular the reluctance of the Commission to accept that a period longer than one year is required for completion of all necessary works by Irish farmers. This is the key issue for us given the large volume of work to be undertaken and the particular need to ensure consistency with timescales and deadlines already agreed in the context of Ireland's action programme on implementation of the directive.

Last week I met Commissioner Fischer Boel and explained to her the importance of this issue for Irish farmers and the urgent need for the early introduction of the revised scheme. The Commissioner was positive in her response and I am confident that the outstanding issues can be resolved quickly.

I am satisfied that the new scheme, when introduced, will provide a very satisfactory financial package for Irish farmers who are required to undertake works to comply with the additional requirements of the directive. I have provided a sum of €43 million in this year alone for the scheme and I envisage a total expenditure of close to €250 million to complete the programme. Subject to receipt of the said EU approval, the proposed changes will include the introduction of a standard grant rate of 60%, with 70% being available in the four zone C counties, for both animal housing and slurry storage. The current standard grant rate for such work is 40%. The scheme will be extended to include horses, deer, goats, pigs and poultry, and mushroom compost. The extension of the scheme to the pig and poultry sectors is particularly significant.

The revised scheme will also see an increase in the maximum eligible investment from €75,000 to €120,000 per holding and the removal of any minimum requirement from farming from the scheme so that all small farmers can participate. The scheme also incudes the introduction of a new 40% grant rate for specialised equipment with specific environmental advantages subject to a maximum eligible investment of €80,000 in the case of decanter centrifuge systems and dry feeding systems for pigs and €40,000 in the case of specialised slurry spreading tankers and related equipment. Eligibility for aid under the scheme of earth-lined stores will be included as soon as the technical specifications for such are finalised.

See this speech in context