Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)

The agreed level of compensation - €1,000 per annum for a maximum of 15 years - was calculated in consultation with Bord na Móna and is based on the amount of money an ordinary household would spend on the extraction of peat for fuel in advance of each winter. I understand the total cost to the Exchequer over that period will be approximately €22 million. It is a fair cost to the Exchequer. These people have to be compensated. I will clarify the rules governing eligibility for compensation. To qualify, applicants must be able to demonstrate that they have a legal interest in or over the land in question and that they were cutting turf on that land during the five years in question. The payments will be limited to one applicant per bog plot. I am aware that some people may have problems in meeting these requirements. Those who do not meet these conditions but feel they have a right to compensation should apply for the scheme and explain their situations. Such cases will be considered on an individual basis. If one's application is declined, one will have the right to appeal to the Peatlands Council, which will make recommendations to me.

Deputy McLellan is aware that this measure has been imposed on us by the EU. It is important that I clarify this. We have been threatened with huge fines. I was entrusted with this matter eight weeks ago. In that time, I have put together a Peatlands Council and tried to do something about it. Nothing had been done about this issue since 1998. If it had been addressed, we would not be in this position. We are trying to do something about it now. We have put a compensation scheme in place. We are trying to examine alternative turf extraction choices.

I thank Deputy Flanagan and all the other Deputies who have helped out in this respect. A definite effort is being made to find a solution to this problem. It is not that easy to do so.

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