Tony Killeen (Clare, Fianna Fail)

The Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, is unable to attend the debate because he was detained longer than he had anticipated fulfilling engagements in Kilkenny as a result of the decision by the Fine Gael Party to refuse a pair today to allow him to undertake important work at the national ploughing championships.

I am pleased to have this opportunity to clarify the current position regarding the end of 2008 deadline for completion of work under the revised farm waste management scheme. The revised scheme was introduced by the Department in March 2006 to assist farmers to meet the additional requirements of the nitrates directive. The amendments to the scheme included, in particular, an increase in the standard grant rate from the previous 40% to 60%, with 70% being available in the four zone C counties of Cavan, Donegal, Leitrim and Monaghan. In addition, the new scheme provided for an increase in the maximum eligible investment ceiling from €75,000 to €120,000 and removed any minimum income requirements from farming from the scheme in order that all small farmers could participate in the scheme.

The immense success of the farm waste management scheme is demonstrated by the 48,580 applications received from farmers by the closing date of the end of December 2006, of which more than 30,000 were received during the final month. More than 42,200 approvals to commence work have issued to date to farmers under the scheme, with the remaining applications either having been withdrawn, refused planning permission or explained by the receipt of multiple applications from a single farmer.

The financial commitment of the Government to the farm waste management scheme is substantial, particularly during these challenging economic times. This is demonstrated by the fact that to date in 2008, €181.8 million has been paid out to farmers under the scheme compared to €21 million in 2006 and €114 million in 2007. The Department is continuing to process payments under the scheme and I hardly need to confirm again that all farmers who complete investment works in accordance with the terms and conditions of the scheme will be paid their full entitlements.

There is no doubt the farm waste management scheme has dramatically transformed the Irish farming infrastructure through this major injection of capital and will leave the sector well positioned to meet the highest international environmental standards required of Irish farming, as well as changing market requirements. It will also continue to strengthen the competitiveness of Irish agriculture.

The deadline of 31 December 2008 for completion of investment works under the scheme is a condition of the EU state aid approval governing the scheme and the European Commission has recently reaffirmed that it expects Ireland to respect this deadline strictly. It should be noted that the farm waste management scheme has been in place since March 2006.

The terms and conditions of the scheme make it clear that payment of grant aid is conditional on the time limit being respected and the Department has consistently held this position since the commencement of the scheme. The Department is issuing its second written reminder to all farmers approved to commence work under the scheme to ensure all work is completed and a payment claim submitted to the Department by the end of this year. No farmer can therefore be unaware of the importance of meeting this deadline.

I thank the Deputy again for giving me an opportunity to clarify the current position on this matter.

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