Simon Coveney (Cork South Central, Fine Gael)
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Question 34: To ask the Minister for Agriculture and Food the average rise in the cost of steel over the past five years; if her attention has been drawn to the impact which same is having on the cost of construction of farm buildings; and if she will make a statement on the matter. [23602/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I have recently forwarded to the Deputy detailed figures in regard to the increase in the cost of steel over the past five years, during which it has risen significantly. I am fully aware of the impact of increases in the costs of labour and materials on the cost of construction of farm buildings. In launching the new farm waste management scheme in March this year I indicated that the standard costs on which the grant payments were to be based were under review. Payment for work under the scheme will be based on the new standard cost levels when they have been approved. The standard costs review involves checking up to 120 items of expenditure to ensure reasonable and sustainable increases in those costs are reflected in the amount of grant paid.

Developments in the cost of materials used in on farm development have not in any way hampered or dampened the enthusiasm for what is a very extensive and generous farm waste scheme which has been widely publicised. Already, approximately 4,300 applications from all parts of the country have been received and some 1,800 approvals have been issued. While work is progressing on the installation of the structures needed to store farm waste, to enable us to comply with EU regulations it is important that applications under the scheme are received before the end of December this year. I urge all farmers contemplating availing of the scheme and its companion scheme relating to demonstration of on-farm waste processing facilities to make sure this deadline is respected. No applications after 31 December can be accepted.

More than €43 million has been provided in the Department's Estimates for the scheme for this year and I am pleased with the high level of take-up so far for this grant aid. The scheme offers grants of up to 75% of the eligible investment costs and recognises the special issues arising for the four zone C counties and younger farmers.

Denis Naughten (Longford-Roscommon, Fine Gael)
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I accept the Minister's acknowledgement that the price of steel has increased by more than 30% in the past two years, not including the significant rises since the start of this year, and the rise in the price of concrete. Will the revised costings take into account the significant rise in concrete prices since January and the rises in the costs of steel and labour? Will the new costings take into account the dramatic changes in the specifications? The amount of steel that must be used has been significantly increased by the new specifications. Clearance between the slurry and the slats has increased from four inches to six inches, and this is more than the Environmental Protection Agency's previous specifications for pig slurry. Will that be taken into account in the costings? An issue was raised with me last week in the Finn Valley and last night in County Roscommon. A farmer I spoke to last night expects to have his approval from the Department on 17 July. He has a contractor in place and the work will cost €100,000. What will he do if this issue is still under review on 17 July? Will he receive a grant of 60% of €100,000, 60% of €60,000 or some other figure the Department comes up with? That is a genuine question that farmers have. They cannot make decisions until the Minister decides on that review. That it will be back-dated to 1 January does not make a difference to many farmers who are looking at putting in significant investment to comply with the nitrates directive and which will not benefit their production and efficiency.

Mary Coughlan (Donegal South West, Fianna Fail)
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I suggest the significant increase in the grant will make a difference and it was this Government and my party that pursued it. Let the Opposition not forget that. Sometimes they do not like to hear the good news about the amount of money that will be invested in the programme.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister should answer the question.

Mary Coughlan (Donegal South West, Fianna Fail)
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In the context of the standard costings, these will revert to the beginning of the scheme. The last costing I have is 154.9 in March 2006, an increase of 0.2 from the February level of 154.7. Some 120 mechanisms in the standard costings will also be reviewed. My difficulty is that we have not brought the partnership talks to finality. If these could be concluded quickly we could resolve the costings issue and, I hope, support the Deputy's constituent who wants to make a decision. The decision will be based on the standard costings and will be put back to 1 January, the date by which the new farm waste management scheme, as presented, begins. The Deputy's constituent will deal with the standard costings from the previous time. As he or she will be part of the review, if there is an increase that will be reflected and the grant made available to that person. Good as they are in Roscommon, I assume that person will not have the contract completed within a two to three-week framework whereby we can deal with the payment once it has been inspected. It will be included in the payment.

Denis Naughten (Longford-Roscommon, Fine Gael)
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It is pointless to explain to any constituent that if the farming organisations do not sign up to the partnership agreement, farmers will not know what the grant scheme will be. That is unacceptable. The Minister should not hold a gun to the farming organisations' heads to try to get the issue on partnership resolved before she signs off on this. It is critically important to farmers. The Minister, as part of the derogation negotiations will argue that farmers are implementing the nitrates directive and are putting the storage in place, but she is delaying that happening by not implementing whatever review has taken place. Surely that review is completed. It is time to start implementing it and indicating to farmers the grant that will be available to them.

Mary Coughlan (Donegal South West, Fianna Fail)
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I refute the Deputy's statement. I intend that we move on standard costings as quickly as possible. It is therefore incumbent on other parties to come forward. I must sign off a large investment programme with the Minister for Finance, who has been more than forthcoming in his support of agriculture since his appointment. It is my hope and aspiration that we will conclude these talks quickly and that we will be able to deal with the issues Deputy Naughten outlined vociferously. Whether or not it is acceptable to the Deputy, I have the €43 million and I will spend it——

Denis Naughten (Longford-Roscommon, Fine Gael)
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We want to know when.

Mary Coughlan (Donegal South West, Fianna Fail)
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I intend that this will take place very soon. If we do not have an outcome I will have to reconsider my position.