Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

European Commission approval for the introduction of a number of targeted agricultural modernisation schemes, TAMS, which are designed to support productive on-farm investment in the agricultural sector, was received in March 2010. Priority was given to the bio-energy, poultry welfare and sow welfare schemes, which were launched by my Department during the first half of 2010. The sheep fencing and handling scheme opened for applications on 1 November 2010 while the dairy equipment and rainwater harvesting schemes were introduced in March 2011. All schemes operated on the basis of a series of tranches to ensure that approvals to commence work could be issued regularly to farmers. Where required, a selection process was used where a particular tranche was oversubscribed, and this has occurred particularly under the dairy equipment scheme, in respect of which demand for grant aid has been very significant.

I provided funding of €20 million in the Department's capital envelope to meet expenditure under the various TAMS in 2012. Almost €12 million has been paid out to date. Expenditure is demand led and dependent on approved projects being completed and valid, and with documented claims being submitted by the farmers concerned. As farmers have two years under their grant approvals to complete the investment works concerned, it is not always possible to determine the calendar year in which the expenditure will arise. In those circumstances, actual expenditure in any one year is outside the control of the Department, but I expect that TAMS expenditure for this year as a whole will be of the order of €15 million.

Additional information not given on the floor of the House.

In anticipation of savings arising under the TAMS allocation for 2012, I have arranged for transfers of funding to other capital expenditure headings where additional funding is required, in particular to meet liabilities arising under the farm improvement scheme and the pre-TAMS sow welfare schemes. As a result, I expect that the overall savings in this general area are likely to be relatively modest.

I am especially conscious of the importance of TAMS as a vehicle for investment in on-farm enterprises to improve commercial viability and also to assist farmers to meet the new EU animal welfare requirements in regard to the poultry and pig sectors. To this end, I regularly review progress in regard to the level of demand and the allocation of funding under the various schemes to make best possible use of the resources available. Last week, I decided to extend the deadline for the submission of applications under the TAMS sow welfare scheme from the end of October 2012 to the end of January 2013 to help those farmers who have not yet been able to lodge valid applications under that scheme. The deadline for completion of work under the TAMS poultry welfare scheme was also extended by my Department until 28 September 2012. Over two thirds of the TAMS expenditure this year has taken place under this particular scheme.

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