Brendan Smith (Cavan-Monaghan, Fianna Fail)

My approach in preparing the 2009 Estimates for my Department was to focus available resources on the measures that allow us to maintain and grow the productive capacity of the agri-food sector. 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 protection scheme, REPS, where the rates of grant had been increased by 17%, the new suckler cow welfare scheme, the farm waste management scheme and the 8% increase in rates under the disadvantaged areas scheme, which has been paid in 2008 and was introduced in 2007.

I decided to reduce expenditure on the disadvantaged areas scheme for 2009 by reducing the maximum area limit to 84 acres, 34 hectares, 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. 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. Of the 102,500 farmers who benefit under the disadvantaged areas scheme, in excess of 50,000 of these also benefit under REPS, while in excess of 47,000 also benefit under the suckler welfare scheme, which introduces a new stream of payments to farmers in 2008. 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 of €220 million payable to farmers under the disadvantaged areas scheme is part of the overall substantial injection of funds paid to farmers situated in those areas. The scheme continues to be one of the best-funded disadvantaged areas schemes in the European Union.

Notwithstanding the difficulties in the public finances and the decisions I have taken against that background, more than €3.2 billion will be spent next year by my 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 as economic conditions improve.

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