Brendan Smith (Cavan-Monaghan, Fianna Fail)

The 2009 Estimates provide over €1.8 billion for the Department of Agriculture, Fisheries and Food and, when combined with EU funding of €1.4 billion, that means that total expenditure in 2009 by the Department will amount to over €3.2 billion.

While difficult decisions had to be taken in light of the situation of the public finances, account also had to be taken of the very high level of investment by the Government in recent years, when significant additional financial resources were committed to areas such as the rural environment scheme, where the rates of grant had been increased by 17% cent, the new suckler cow welfare scheme, the farm waste management scheme, and the 8% increase in rates under the disadvantaged areas scheme introduced last year.

With regard to the 2009 disadvantaged areas scheme, I decided to reduce expenditure for 2009 by reducing the maximum area limit to 34 hectares, which approximates to 84 acres, and by a small increase in the minimum stocking density requirement. While overall expenditure will fall, almost 67,000 farmers will not suffer any reduction in their payments as a result of the introduction of the 34 hectare limit. Furthermore, these farmers, as well as all claimants under the scheme, will continue to benefit from the substantial increase of 8% in the rate of aid introduced by the Government in 2007. In addition, of the 102,500 farmers who benefit under the disadvantaged areas scheme, in excess of 50,000 of these also benefit under the rural environment protection scheme, REPS, while in excess of 47,000 also benefit under the suckler welfare scheme, which introduces a new stream of payments to farmers this year. It should also be taken into account that in addition to the payments under these schemes, a further €920 million was paid to farmers with disadvantaged area lands under the 2007 single payment scheme. The total amount payable of €220 million to farmers under the disadvantaged areas scheme is part of the overall substantial injection of funds paid to farmers situated in the areas, and the scheme continues to be one of the best well funded disadvantaged areas schemes in the European Union.

Notwithstanding the difficulties in the public finances and the decisions I have taken against that background, the position is that in excess of €3.2 billion will be spent next year by the Department in support of agriculture, fisheries and food. It is important to get through this challenging period and continue towards achieving the full potential of our most important indigenous industry when the economy begins to grow again.

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