Seán Connick (Wexford, Fianna Fail)

I thank Deputy Crawford for raising these matters with me. I am pleased to have this opportunity to clarify the position on the farm waste management and farm improvement schemes, which are at issue in the cases referred to by the Deputy.

A revised farm waste management scheme was introduced by the Department in March 2006 to assist farmers in meeting the additional requirements of the nitrates directive. The amendments to the scheme included an increase in the standard grant rate from 40% to 60%, with 70% being available in the four zone C counties of Cavan, Donegal, Leitrim and Monaghan. In addition, the new scheme provided for an increase in the maximum eligible investment ceiling from €75,000 to €120,000 and removed any minimum income requirements from farming from the scheme so that all small farmers could participate. As the Deputy has mentioned, all work had to be completed by farmers by 31 December 2008 and the application of this date was a strict requirement of the EU Commission state aid approval for the scheme.

The immense success of the scheme is demonstrated by the fact that almost 43,000 approvals to commence work issued to farmers while the scheme was in place. However, due to the budgetary constraints placed on the Department at the beginning of 2009, it was decided to make the remaining payments under the scheme on a phased basis, with 40% being paid in that year as claims were approved, a further instalment of 40% in 2010, and the remaining instalment of 20% in 2011. The Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, also announced at that time that a special ex gratia payment would be made to farmers whose grants were deferred in this manner. It is also intended to make this payment in early 2011. The financial commitment of this Government to the scheme is substantial, particularly during these challenging economic times. It is estimated that when all payments have been made under the scheme in early 2011, the total expenditure under the scheme since its introduction in 2001 will be of the order of €1.2 billion.

The farm improvement scheme was introduced on 12 July 2007 following receipt of EU approval for the Rural Development Programme 2007-2013, and closed for applications on 31 October 2007. The scheme replaced the previous farm waste management, dairy hygiene and alternative enterprises schemes, which had closed for new applications at the end of 2006. Under the 2007-2013 programme, a sum of €85 million was allocated for modernisation of agricultural holdings, including the farm improvement scheme. Of this amount, €6 million was subsequently earmarked for the introduction of the 2007 pig welfare - sow housing - scheme, thereby leaving an allocation of €79 million for the farm improvement scheme. It was clearly stated at the time of the launch of the scheme and in its terms and conditions that the scheme would be suspended when the financial allocation for the scheme had been reached.

A total 12,675 applications were received from farmers under the farm improvement scheme by the closing date of 31 October 2007. However, the funding of €79 million permitted approvals to issue to farmers only for the 7,347 applications received up to 21 October 2007, and these approvals have now issued to the farmers concerned. Under both schemes, however, it is clear that all work must be completed in full in accordance with the Department's technical specifications. This is clearly set out in the terms and conditions of both schemes. The existence of these Department specifications is widely known in the sector, and they reflect the highest construction, health and safety and animal welfare standards.

With regard to the specific cases raised by the Deputy, the circumstances of each case are different, and the time available does not permit me to enter into the individual details of each case. I propose therefore to write to the Deputy to advise him of the up-to-date position in each case.

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