Christy O'Sullivan (Cork South West, Fianna Fail)

The 31 December deadline is a condition of EU state aid approval and the Commission has consistently indicated its expectation that Ireland will adhere strictly to that deadline. It is particularly significant that the 31 December 2008 deadline was introduced as an exceptional measure, having regard to the specific conditions that applied in Ireland, including the weather, and the then lack of capacity in the building industry to get jobs started.

All projects that are completed and have their documentation with the Department by 31 December will be paid in full. There should be no concerns about that. However, in recognition of the fact that some farmers, for whatever reason, may not be able to proceed with the full project for which they have approval, the Minister has decided the Department will grant aid particular discrete elements of work. The Department has written to all approval holders to clarify those discrete units that will attract grant aid. This was a very practical intervention by the Minister to ensure that those proceeding with a more limited project would not lose their grant. It is worth noting that a similar scheme in Northern Ireland also has a deadline of 31 December 2008.

Despite the particularly difficult economic situation, the Department of Agriculture, Fisheries and Food will, through Exchequer and EU funding, invest €3.26 billion in support of the agrifood sector in 2009. This includes €335 million for REPS and its 60,000 participants and provides for a 17% increase in payments under REPS 4.

In addition, the Minister has ensured that the €250 million for the suckler welfare scheme agreed in partnership will be honoured in full, though the rate of payment per head will have to be reduced if the current level of participation in the scheme is maintained over its remaining four years.

The Minister for Finance has confirmed the renewal of four very important tax reliefs of great benefit to farmers, particularly young farmers.

See this speech in context