Simon Coveney (Cork South Central, Fine Gael)

While I concur that the decision is disappointing, I had to make choices on the agri-environment options scheme because it was launched without financial provision being made for it in the budget. We had to create a budget for the scheme and faced a choice in this regard. We could increase the payment for the designated areas from €75 to €100 per hectare which would have cost approximately €4 million per annum and required us to reduce the number of successful applicants for the agri-environment options scheme. However, only so much money is available. This year, €25 million has been made available in each of the next five years to fund 2011 applications to join the scheme.

The Deputy is correct that it is difficult to incentivise farmers to continue to keep sheep and cattle on marginal land and they must be supported. For this reason, such farmers are first in line to join the agri-environment options scheme this time around.

Many people have suggested that the number of applications for the agri-environment options scheme is low. To clarify the matter, approximately 7,000 applications have been made under the scheme. At least 6,000 applications have been received to date and it is estimated that once applications are received from various offices, the total number of applications for the new scheme will be approximately 7,000. I want to ensure all applications are accepted. If I were to increase the payment for the relevant designated area from €75 to €150 per hectare, the decision would have implications for other small farmers in need of support who cannot join the scheme despite being located in Natura areas and special areas of conservation. The problem I have is that I must make choices in the context of an expenditure ceiling in my Department. That is the reason for my decision.

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