Brendan Smith (Cavan-Monaghan, Fianna Fail)

REPS 4 was closed to new applicants in July against the background of the deterioration in the public finances, the limited resources available to the Department and the increasing cost of the scheme as a result of the increase in the number of REPS participants. Over 12,000 farmers joined REPS 4 in 2007 and 2008, and about 17,000 more applications were received up to the 2009 closing date of 15 May for 2009. A further 1,500 applications which were received up to the time of closure will be processed as applications for 2010. I will be seeking the approval of the House for a Supplementary Estimate for my Department to transfer savings and additional receipts to scheme expenditure, including REPS. If agreed, payments due to REPS farmers in 2009 will be the highest ever. All those already in REPS will continue to receive annual payments until their current contracts run their course.

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 environmental actions from which farmers may choose. Funding for the new scheme will include the additional modulation funds which I ensured would be retained for the benefit of Irish farmers in the negotiations on the CAP health check of last year. It will also include matching Exchequer funding. My officials are at present in discussions with the European Commission on the details of the scheme. The level of funding for the new scheme will be decided in the forthcoming budget and in the context of the allocation of resources for my Department.

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