Brendan Smith (Cavan-Monaghan, Fianna Fail)

While there have been a healthy number of applications under the installation scheme this year, applications for the early retirement scheme are relatively modest. However, it is worth making the point that all current participants in the scheme will be paid and applications received to date will be processed and next year almost €57 million is being provided to meet current commitments.

In his budget speech yesterday, the Minister for Finance specifically referred to the renewal of several tax reliefs of benefit to the farming sector. Several reliefs specifically targeted at new entrants are particularly welcome, especially given the notable increase in the number of young people entering agricultural college over the past two years and renewed optimism in the sector. Of particular value is the extension of young trained farmers' stamp duty relief for four years until the end of 2012. This was a significant component of Macra na Feirme's pre-budget submission and is aimed at bringing about a level of stability and security to families planning and organising early farm transfers. This relief is estimated to be worth €53 million in a full year.

The top rate of stamp duty on agricultural land transactions has been reduced from 9% to 6% on agricultural land transactions above €80,000. This should help reduce the purchase cost for buyers and make transactions more affordable.

Also of benefit to young farmers is the renewal of the 100% rate of stock relief which is useful for young farmers building up the value of their herds. The general 25% rate of stock relief for all farmers was also renewed. Both these reliefs were renewed for a period of two years until 31 December 2010 at an estimated cost of €2 million per year.

Stamp duty relief for farm consolidation is renewed for a two-year period until the end of June 2011. The relief is aimed at farmers reducing their farm fragmentation through the purchase and sale of parcels of land in accordance with the appropriate guidelines. The accelerated rate of capital allowances has also been renewed for a further two years allowing a write-off period of three years and a floating allowance of the lesser of 50% of qualifying expenditure or €31,750 in any one year. This measure is estimated to be worth €10 million in a full year. This broad range of budget measures are aimed at supporting improvements in farm structures by encouraging new entrants, farm consolidation and mobility. Combined, these cost-efficient measures are estimated to be worth more than €65 million in total in a full year.

There has been much comment over the past 24 hours on public service reform, much of it uninformed and incorrect. The public service is not immune from the decisions that have to be taken at this time. The grants-in-aid to the State bodies under the Department's aegis, namely Teagasc, Bord Bia, Bord Iascaigh Mhara, Marine Institute and the SFPA, are being reduced to take account, in particular, of the need to achieve payroll and other efficiency savings. These savings must be seen against what was a significant increase in funding to these organisations in recent years. Next year, I will provide €235 million to them to support agricultural, fisheries, food and forestry activities and I will ask them to prioritise their activities in the light of the current budgetary position and having regard to overall policy for the sector.

In addition, the salaries provision for my Department will require a further fall in staff numbers of 150 by the end of next year. This is in addition to a reduction of almost 500 in recent years and my Department is engaged actively in a programme of reviews aimed at improving the efficiency and effectiveness with which we provide such a wide range of services to all our stakeholders. It is no more than the taxpayer deserves.

The agri-food sector is of central importance to our economy. Success will be achieved by reliance on quality, innovative and sustainable food production. We have many natural advantages in food production and have developed a sophisticated food industry. The opportunities now emerging for us as a food producing country are there to be grasped. I assure the House that, for its part, the Government realises the potential of the sector.

Notwithstanding the severe budgetary pressures, through Exchequer and EU funding, the Department of Agriculture, Fisheries and Food will invest €3.2 billion in support of the agriculture, fisheries, food and forestry sectors next year. In addition, the Minister for Finance has also committed to the renewal of tax relief worth €65 million for a further period of two years in most cases and four years in one case to which I earlier referred which was made at the request of Macra na Feirme. I am also particularly pleased that the Minister has confirmed that the possibility of further measures specifically targeted at young farmers will be considered in the context of the forthcoming Finance Bill.

Despite suggestions to the contrary, the Government's level of commitment to and investment in agriculture is significant and recognises the role the sector has to play and the enormous contribution it makes to the Irish economy. My approach is targeted at the specific intention of protecting the sector's most productive elements and ensuring that it continues to prosper. That approach requires choices to be made and a balance to be struck. I am satisfied that the choices I have made are the right ones and in the best interests of the Irish agri-food sector at this time.

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