Brendan Smith (Cavan-Monaghan, Fianna Fail)

On 9 July 2009, when I announced the closure of REPS to new applications, there were 55,630 farmers in the scheme. These included 12,575 who had applied for REPS 4 in 2008. In addition, the Department had received a further 16,718 applications before the 2009 closing date of 15 May, and these are currently being processed for entry into the scheme.

Since 9 July, 4,639 farmers have completed their contracts in REPS. Another 5,704 will have finished by 31 December 2009. All of these would have had an opportunity to apply for REPS by this year's closing date of 15 May to ensure that they could continue in the scheme. By 31 December 2010, a further 9,698 will have completed their contracts in REPS.

REPS 4 was closed to new applicants in July against the background of the situation in the public finances, the resources available to the Department and the substantial increase, over the past year, in the number of REPS participants. As indicated, almost 17,000 applications were received up to the closing date of 15 May for the 2009 scheme, and further applications which were received up to the time of closure will be processed as applications for 2010. Payments due to REPS farmers for 2009 will be the highest ever and all participants already in REPS will continue to receive annual payments until their current contracts run their course. The number of farmers in REPS is more than enough to ensure that all EU co-funding negotiated in the current rural development plan will be drawn down.

I plan to introduce a new agri-environment scheme in 2010 which will reduce compliance costs to participants and which will provide a menu of targeted actions from which farmers may choose. Funding for the new scheme will include the additional modulation funds which I ensured will be retained for the benefit of Irish farmers in the negotiations on what may be termed the CAP "Health Check". It will also include additional Exchequer funding. In August 2009, I invited submissions on the proposed new scheme. The details of the scheme are in the process of being finalised. It will require the approval of the European Commission, which has already received an outline of our proposals.

I am acutely aware of the current difficult situation with regard to farm incomes and of the intense pressure on many farm families. Yesterday, I announced the commencement of advance payments of 70% of single farm payments amounting to in excess of €800 million which will begin in the coming days. This is the first time that an advance of this magnitude has been paid at this early stage of the year; the official opening date for release of single farm payments is 1 December in each year. Furthermore, the payment of €220 million under the disadvantaged area scheme commenced last month. The combination of these two schemes together with payments under REPS and the suckler cow scheme amounts to payments of more than €1.8 billion to Irish farmers during 2009 and represents substantial and necessary support for farm incomes. I have also been working closely with like-minded ministerial colleagues in other member states to ensure the deployment of the full range of the EU market support instruments to support the dairy sector which has been undergoing a particularly difficult time.

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