Eamon Scanlon (Sligo-North Leitrim, Fianna Fail)

The deadline of 31 December 2008 for completion of work by farmers under the revised farm waste management scheme introduced by the Department in March 2006 is a condition of the EU state aid approval for the scheme. The European Commission has since reaffirmed that it expects Ireland to respect strictly this deadline. The Department of Agriculture, Fisheries and Food is continuing to process payments under the scheme and all farmers who completed investment works in accordance with the terms and conditions of the scheme will be paid their full entitlements. The scheme already has dramatically transformed the farming infrastructure through the major injection of capital and will leave the sector well positioned to meet the highest international environmental standards required of farming, as well as the changing market requirements. It will also continue to strengthen the competitiveness of Irish agriculture into the future.

The financial commitment of the Government to the scheme is very substantial, particularly during these challenging economic times. This is demonstrated by the fact that more than €180 million has been paid out to farmers under the scheme so far this year, compared to €21 million in 2006 and €114 million in 2007. The terms and conditions of the scheme made it clear that payment of grant aid was conditional on the time limit being respected and the Department has consistently held this position since the commencement of the scheme.

I understand the Department has sent written reminders to all farmers approved to commence work under the scheme to ensure that all work is completed and a payment claim submitted to the Department by the end of this year, which indicates to all farmers the importance of meeting this deadline. It is better for people to know where they stand. Whatever happened last weekend in Sligo and north Leitrim, there was a rumour that unless farmers submitted their VAT estimates before the budget, it would be discontinued. I know people who travelled from Leitrim and Sligo to Limerick to hand in VAT receipt forms because they were fearful they would not receive their VAT rebate. It is very unfair and people are very concerned. I received a number of telephone calls last week on the matter. It is wrong to send out the wrong message. People should be told exactly the situation and in fairness that is what the Government has done on this scheme.

The farm waste management scheme has proved to be very successful. The scheme was introduced in February 2001 under the national development plan and farmers have responded well to it. The funding provided assists farmers in completing the work and ensuring that Ireland meets our requirements under the EU nitrates directive. Farmers have benefited under the farm waste management scheme and it is vital that we continue to provide practical support to them. This funding is an essential part of that support. The scheme's success has been the result of one of the biggest ever State-supported investments in farm infrastructure. The scheme has significant environmental benefits and assists farmers to meet the requirements of the nitrates directive. The scheme has been heavily promoted by Government as a way to meet the requirements of the EU nitrates directive and offers participating farmers up to 70% grant aid to complete necessary works before the year-end.

I understand the poor weather has created difficulties for some farmers to get works completed, but as matters stand the terms and conditions of the scheme make it clear that payment of grant aid is conditional on the time limit being respected. The last decade has been a time of great change for our country as a whole. The opportunities available to our people have expanded incredibly and farming is no longer a dominant industry. However, that does not mean that farming is a part of our past. The interests of farmers are still supported and promoted in this country. Farmers have witnessed significant change throughout their sector over recent years. Investment in agriculture is always crucial. Ireland is still known as a green island, a place where agriculture runs deep, where the connection between the people and the land will never be broken. Investment in the sector will allow farmers, processors and all entrepreneurs in the sector to develop and market new products and avail of new opportunities. Innovation is key to all sectors in society and agriculture is no exception.

A combination of strong leadership and a close working relationship with farmers and the wider agrifood sector is in all of our interests. We should all be committed to ensuring that farming realises its full potential and retains its position at the cornerstone of life in rural Ireland.

This scheme has been a fantastic success. It will end up costing close to €800 million as the work is completed next year. This funding is provided by the Government. It is not European money, as some people believe. It is Irish taxpayers' money provided to improve farming and I commend the Government's amendment to the House.

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