Dáil debates

Wednesday, 16 December 2009

10:00 pm

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)

Gabhaim buíochas leis na Teachtaí as ucht deis a thabhairt dom freagraí a thabhairt ar an ceisteanna tábhachtacha seo.

Payments under the 2009 disadvantaged areas scheme commenced on 22 September 2009. To date, the Department has made payments worth in excess of €220 million to over 97,000 scheme beneficiaries, representing over 96% of eligible applicants. In addition, the necessary savings required to increase the level of total payments above the original allocation of €220 million have now been identified within the Department's budget. The necessary sanction has been obtained from the Department of Finance and I expect that additional payments in the region of €3 million will issue this week.

These additional payments, which will bring total payments above the original €220 million provision, reflect the fact that payments made in any given year include those in respect of a proportion of applications carried over from previous years.

In addition to payments under the disadvantaged areas scheme, payments under other schemes have continued in recent months at an unprecedented level. For example, payments under the single payment scheme, worth almost €1.25 billion, have issued to some 123,000 farmers since 16 October. The advance payments began a full six weeks earlier than provided for under the rules of the scheme and the level of advance payment, at 70%, is unprecedented. This reflects the pressure brought to bear on the European Commission by the Minister, Deputy Brendan Smith, in recognition of the difficulties being experienced by farmers with low commodity prices and poor weather during the summer months. The advance payments at the 70% rate provided a valuable cash flow benefit for Irish farmers.

The efficiency of the payment systems operated by the Department compares favourably with even the most efficient systems operated by other member states. It is well worth recording the fact that the Department's record in issuing payments under both the disadvantaged areas scheme and the single payment scheme are second to none in the EU.

We have achieved an unprecedented 99% level of payments so far and, this year in particular, the timing and level of payments have made a major contribution to farm family incomes at a difficult time.

In addition to these two major schemes, which between them will result in payments worth almost €1.5 billion this year to almost 120,000 Irish farmers, I am pleased to confirm to the House that payments under the new 2009 upland sheep payment commenced this week, with in excess of €4.7 million having already issued. In addition, payments under the emergency damaged fodder aid scheme, targeted specifically at those farmers most seriously affected by the widespread flooding, will also begin to issue this week.

The Department is also continuing to make REPS payments and, following the supplementary Estimate approved by the Dáil last week, I expect that we will pay up to €369 million under REPS this year, which is one of the largest amounts ever paid in any given year.

I want to assure the House that the Government and I acknowledge the value of these schemes to Irish farmers, as evidenced by the decisions taken in last week's budget to protect funding for them in 2010. I am entirely satisfied that the level and efficiency of payments made under the various schemes by the Department in recent months has played, and will continue to play, an important role in providing a vital boost to the economic activity of rural areas.

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