Trevor Sargent (Dublin North, Green Party)

Considerable lateral thinking has informed the background to the scheme. The Deputy will be aware that it was made very clear in the discussions with the Commission that the scheme is an environmental scheme, not a production scheme. We tried to include the sheep-only option but it was a step too far from the Commission's point of view because it wanted to ensure the measure was clearly environmental.

The scheme is demand-led and it is therefore a question of ensuring take-up on the basis of demand. The Deputy probably read the front page of the farming supplement of the Irish Independent this morning, as I did, and, if so, he will have noted that the reduction in sheep numbers is part of a bigger picture associated with the move from dry stock to tillage. There are also other factors, despite the ironic fact that stock prices have increased. This is perhaps because of supply and demand as much as any other factor. Consumption is reducing in our greatest export market, France.

There are broader questions to be answered with which it is not possible to deal in respect of REPS 4.

The timing of the question is greatly ahead of the Department's ability to evaluate the exact position. While one may speculate on the number of applications, the reason the answer was so short is it is not possible to provide much information at present until the information has been analysed in greater detail. At present, the Department is obliged to take account of the Commission's assertion this must be an environmental scheme, rather than a production assistance scheme.

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