Simon Coveney (Cork South Central, Fine Gael)

Many difficult decisions had to be made by the Government in the light of the recognised ongoing weaknesses in the public finances. In that regard, savings had to be found in my Department's 2012 budget, in the context of which a decision was taken to limit the funding for the 2012 disadvantaged areas scheme to €190 million. To achieve this saving, priority is given to active farmers who farm exclusively within the disadvantaged areas, and there is a proposed range of technical adjustments to the qualifying criteria of the scheme. As the disadvantaged areas scheme forms part of the 2007-13 partially EU-funded rural development scheme, the approval of the EU Commission is being sought for the proposed changes. However, the reduction in the level of funding under the scheme will not have any impact on amounts drawn down from the EU under the rural development programme.

In regard to the proposed changes, I am pleased the savings can be achieved without reducing the rate of aid per hectare and with no reduction in the maximum area payable of 34 hectares. That means the reduction will have no impact on the level of aid payable to active farmers with holdings made up entirely of disadvantaged area land.

The proposed adjustments include increasing the minimum stocking density requirement from 0.15 livestock units per hectare to 0.30 livestock units per hectare in respect of 2011, the reference year; calculating the stocking density over a retention period of six months, with the average calculated over the 12 month period; excluding horses, with the exception of equine breeding enterprises or other commercial horse enterprises; providing for reduced rates of aid where applicants hold both eligible and ineligible land, that is, non-disadvantaged areas land; and excluding land located more than 80 km from an applicant's main holding where that main holding is situated outside disadvantaged areas.

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