Trevor Sargent (Dublin North, Green Party)

Is mian liom ar dtús buíochas a ghabháil leis an Teachta Ferris a thug an deis dom an rún seo a phlé. Ireland is currently experiencing a period of economic turbulence stemming from both international and domestic factors and the context for this year's budget differs very considerably from those in the past 15 years. The most recent figures from the Department of Finance show that revenue is anticipated to fall by 13% compared with the 2008 budget estimate. This shortfall highlights the precariousness of the current situation. Based on these figures, it appeared that the Government deficit would be approximately 8% next year.

This is why this Government has had to act to take remedial action over the budgetary situation by utilising prudent measures. This will ensure that the Irish economy is in a position to ride out the current economic storm and to move back to higher levels of growth in tandem with the global economy.

Some of these remedial measures relate to schemes operated by my Department, including the installation aid scheme. This scheme was established under the aegis of the National Development Plan 2000-06 and provided a grant of €9,523 to successful applicants between the ages of 18 and 35 years who set up in farming for the first time on or before 31 December 2006. Its aim was to encourage young trained people to engage in farming.

The principal requirements of the scheme were that applicants must be first set up on a holding of at least five hectares of eligible land and be between the ages of 18 and 35; generate a minimum of 20 income units from farming within 12 months of the date of set up and have a total income of at least 50 income units within two years of set-up; and complete the educational requirements within two years of set up. To date 5,377 applications have been received and 4,147 payments made totalling €38.5 million.

The installation aid scheme was replaced by the young farmers installation scheme and was introduced in June 2007 under the aegis of the 2007-13 rural development programme. It provides a higher grant level of €15,000, an increase of 58%, to farmers between the ages of 18 and 35 years who are set up in farming for the first time on or after 1 January 2007.

The principal requirements of this scheme are that applicants must generate a minimum of five production units from farming at the time of first setting up or within 12 months of that date; fulfil, within two years of first setting up on the farm the educational requirements of the scheme; submit and complete a business plan; obtain title-leasehold title to at least 15 hectares of eligible lands in less favoured areas or 20 hectares in other areas; and have not more than €50,000 in non-farm income in a designated tax year. Since the launch of the young farmers installation scheme in June 2007, 983 applications have been received under the scheme and 311 payments made totalling €4.7 million. All commitments entered into under the young farmers installation scheme up to and including 14 October 2008, budget day, will be honoured by my Department.

On the specific point raised by the Deputy, the scheme includes a wide range of educational certificates available to determine eligibility. An applicant has two years from date of set up to complete the agricultural experience and training requirements of the scheme. It is recognised that it may take some time to be presented with the actual certificate from the awarding body. In such cases, Teagasc or the awarding body can confirm achievement of the award thus ensuring the applicant can be paid. The young farmers installation scheme is fairly broad in the number of awards that it recognises towards eligibility.

I also emphasise that a number of farm tax measures were renewed in budget 2009. These are part of a number of schemes and reliefs that have been put in place in recent years to bring about improvements in land mobility that will, in turn, improve productivity and efficiency, particularly for young farmers.

These reliefs include the renewal of stamp duty relief for four years until 31 December 2012, worth an estimated €53 million in a full year; the renewal of stamp duty relief for farm consolidation for two years from 1 July 2009 to 31 June 2011; the renewal of both the general and the young trained farmers rates of stock relief for a further two years, estimated cost to the Exchequer of €2 million in a full year; and the extension of the accelerated capital allowance for necessary farm pollution control facilities from 31 December 2008 to the 31 December 2010, worth an estimated €10 million in a full year.

When combined these farm tax measures are estimated to be worth over €65 million in a full year. In addition, the top rate of stamp duty on agricultural land transactions is being reduced with effect from 15 October. This should reduce the cost of agricultural land to purchasers and encourage a higher number of transactions. All these measures will help young farmers to improve land mobility, increase land swaps and attain higher environmental standards.

I want to confirm to the Deputy that payments under the scheme will be made to an applicant who has met the education and training requirements provided that the other criteria of the scheme are met.

Ar deireadh, má tá litir nó eolas ag an dTeachta Ferris maidir le cás nó cásanna faoi leith, gheobhaidh mé freagra dó, má thugann sé an t-eolas sin dom. I wish to be of assistance and if there are specific details which I did not have when the matter was tabled, I would like to get them in order that I can give the Deputy a more detailed reply.

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