Johnny Brady (Meath West, Fianna Fail)

That is correct. There is no doubt about that. We were very lucky to get people from Kerry and the west.

When the day came when young people were not interested in continuing farming, it was decided to divide the land. Currently, my neighbours are breaking up a farm partnership and this measure is most beneficial to them. The Minister came under much pressure from farming organisations and individual farmers. This issue was raised on numerous occasions at meetings of the agriculture committee. I thank the Minister, Deputy Cowen, for acknowledging the problem and acceding to the request to change the law.

I welcome the proposal to spread income tax liability over six years for diversification aid under the sugar beet compensation package. This measure follows on from the Finance Act 2007 provision which has already provided for similar treatment for restructuring elements of the package. The cost in 2008 is estimated to be €9 million. Deputy Crawford will recall deputations, especially from south Leinster and Munster, at numerous committee meetings regarding this difficult problem with which farmers were confronted.

The Finance Bill includes a provision to avert a clawback of income tax when a farmer who has opted to avail of the special income tax averaging arrangements subsequently enters a milk production partnership. The farmers' flat rate addition for VAT is being retained at 5.2% for 2008. Stamp duty relief for farm consolidation has been extended which will provide significant assistance for the farming community in improving the viability of holdings through consolidation.

An additional €15 million has been provided for the suckler welfare scheme to help develop business opportunities in the increasingly competitive beef sector. A payment of up to €80 per cow, up to a limit of 100 cows, will be available to suckler cow farmers who undertake to comply with certain animal welfare measures for calves born from 1 January 2008. I compliment the Minister for Agriculture, Fisheries and Food, Deputy Coughlan, for pushing these changes hard in Europe in spite of opposition. This scheme is most important for the future of the beef sector.

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