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

The problem arose when installation aid was abolished without notice. Many people who had submitted applications missed out because there was literally a shut-down of that scheme. Many people were caught out by that. We have not been able to find the money to reopen that scheme and so I decided to prioritise young farmers through the new CAP, which we have done very successfully. A young farmer lucky enough to take over a farm of 50 hectares or more will receive €16,000 in single farm payments over a five-year period. This is a significant support provided through the new CAP. Also, a young farmer investing €70,000 or €80,000 in a new milking parlour or other facility on a farm that is eligible for grant aid will now receive 60%, as opposed to 40%, of the cost in that regard.

The problem that arises is one of definition. I agree with Deputy Kyne that costs are the same for everybody and that we need to be seeking to treat young farmers the same. The problem is that young farmers who have been farming for ten years do not meet the definition of a young farmer. Essentially, young farmers are defined as people coming into farming who need a good start to get their business up and running. This is the reason for the five-year rule. The problem with the five-year rule, which makes absolute sense in terms of defining young farmers who have come into farming in the past five years, is that a small number of people who missed out on installation aid because that scheme was shut down without notice are now also missing out on this support. Essentially, that is the problem.

I will examine this further in the context of the national reserve, which in my view is the only area where there may be some flexibility, because the Commission has been very rigid on this issue. For us to spend public money, that is, EU money, on young farmers, they have to be defined as young farmers. If they are not, we are limited in terms of what we can do.

I totally take on board what the Deputies are saying and I have much sympathy for it. Finding a solution is not as straightforward as they might think. I have had long conversations on this issue with various parties, particularly Macra na Feirme, to try to find acceptable solutions that could be applied consistently without setting an inappropriate precedent.

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