Brendan Smith (Cavan-Monaghan, Fianna Fail)

The 2009 budget was prepared against the background of a serious deterioration in the national finances. The limited resources available meant that difficult choices had to be made between competing demands.

My priority 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 agrifood sector. The 2009 Estimates provide over €1.8 billion for my Department and, when combined with EU funding of €1.4 billion, that means total expenditure in 2009 by my Department will amount to more than €3.2 billion.

In regard to the early retirement scheme and the young farmers installation aid scheme, all fully completed applications received by the Department up to and including 14 October 2008 will be processed and, if they are in order, payment will be made. An allocation of €56.7 million has been made for 2009 to meet current commitments under the scheme of early retirement from farming and the young farmers installation aid scheme, but, for the present, it has been necessary to suspend new applications for those schemes.

While difficult decisions had to be taken in light of the public finances, account also had to be taken of the 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, where the rates of grant had been increased by 17%, the new suckler cow welfare scheme, the farm waste management scheme and an 8% increase in rates under the disadvantaged areas scheme introduced in 2007.

I have no plans at present to re-open the young farmers installation aid scheme and the early retirement scheme to new applications, but the limiting of the suspension of the scheme will be considered at the earliest opportunity having regard to the general budgetary situation.

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