Martin Ferris (Kerry North, Sinn Fein)
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As Deputies will be aware, among the cuts made in last week's budget was a decision to close off the early retirement scheme and the installation grant scheme for farmers. Overall, the allocation to the Department of Agriculture, Fisheries and Food was reduced by 13%, over €210 million, with particular impact on the crucial area of research and development as, for example, with the cut of over €10 million in the Teagasc budget.

The actual size of the cut in the allocation for the two schemes I refer to is small within the context of the overall budget, but it represents a severe blow to those directly concerned. In my motion I specifically refer to those young farmers who qualified earlier this year for their farm certificate, awarded by FETAC, but whom, it would appear will not now be granted installation aid. I have details of 23 young farmers in County Kerry who are in that position. They were all informed in July that they had qualified for the certificate and assured in writing by Teagasc that the certificates would be issued to them within six weeks. I have a letter from Teagasc to the students, dated July 2008. It says:

I enclose a statement of your results in the above programme. If you have any queries about your results you should lodge an appeal, in writing, with your College Principal or Education Officer within ten working days of receipt of this letter.

Your FETAC certificate will be forward to your college or local training centre and FETAC tell us that this could take up to six weeks. The college/centre will then arrange to have it forwarded or presented to you. Please retain it carefully for future reference.

This is a letter from Teagasc certifying that these 23 young farmers, after doing a two year course, had qualified for the green certificate. That was in July, but as of yet they have not received it. Theoretically, at least, they are not now in a position to apply for installation aid and that is a major setback to young farmers starting out in life.

I also make the general point that closing the two schemes, as already mentioned, is a grave mistake. During the summer I met farmers in the west as regards the report being compiled for the Joint Committee on Agriculture, Fisheries and Food. One of the issues raised regularly is the fear that young family members will not continue to farm and that a family tradition will come to an end. Where there is no interest in taking over a farm, there is nothing anybody can do but we are talking about young men who want to farm, who have trained themselves to farm and badly need whatever aid is available to get a start. Abolishing such schemes represents a vote of no confidence in rural Ireland.

There are massive areas of potential within farming which can be tied in to the overall rural economy and farmers have been encouraged as part of the reformed CAP to examine new systems such as energy crops and other non-traditional enterprises. Therefore, to reduce the resources devoted to research and development and to discourage young people from taking up farming makes no sense. People want to continue in farming, but massive obstacles are being placed in their way. The closing of the retirement and installation schemes is yet one more such barrier.

I tabled this motion particularly on behalf of the 23 young farmers who come from all over County Kerry. As I said, it took them two years to do the course — two days a week, travelling to the Teagasc centre in Killarney, putting in a huge effort. Part of the reason for doing that is to qualify for whatever start up grants are available for young farmers. I ask the Minister to look at this. The very fact they qualified in July makes them eligible for such grants. To do otherwise would be an abnegation of all responsibility to these young people by the Department.

Trevor Sargent (Dublin North, Green Party)
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Is mian liom ar dtús buíochas a ghabháil leis an Teachta Ferris a thug an deis dom an rún seo a phlé. Ireland is currently experiencing a period of economic turbulence stemming from both international and domestic factors and the context for this year's budget differs very considerably from those in the past 15 years. The most recent figures from the Department of Finance show that revenue is anticipated to fall by 13% compared with the 2008 budget estimate. This shortfall highlights the precariousness of the current situation. Based on these figures, it appeared that the Government deficit would be approximately 8% next year.

This is why this Government has had to act to take remedial action over the budgetary situation by utilising prudent measures. This will ensure that the Irish economy is in a position to ride out the current economic storm and to move back to higher levels of growth in tandem with the global economy.

Some of these remedial measures relate to schemes operated by my Department, including the installation aid scheme. This scheme was established under the aegis of the National Development Plan 2000-06 and provided a grant of €9,523 to successful applicants between the ages of 18 and 35 years who set up in farming for the first time on or before 31 December 2006. Its aim was to encourage young trained people to engage in farming.

The principal requirements of the scheme were that applicants must be first set up on a holding of at least five hectares of eligible land and be between the ages of 18 and 35; generate a minimum of 20 income units from farming within 12 months of the date of set up and have a total income of at least 50 income units within two years of set-up; and complete the educational requirements within two years of set up. To date 5,377 applications have been received and 4,147 payments made totalling €38.5 million.

The installation aid scheme was replaced by the young farmers installation scheme and was introduced in June 2007 under the aegis of the 2007-13 rural development programme. It provides a higher grant level of €15,000, an increase of 58%, to farmers between the ages of 18 and 35 years who are set up in farming for the first time on or after 1 January 2007.

The principal requirements of this scheme are that applicants must generate a minimum of five production units from farming at the time of first setting up or within 12 months of that date; fulfil, within two years of first setting up on the farm the educational requirements of the scheme; submit and complete a business plan; obtain title-leasehold title to at least 15 hectares of eligible lands in less favoured areas or 20 hectares in other areas; and have not more than €50,000 in non-farm income in a designated tax year. Since the launch of the young farmers installation scheme in June 2007, 983 applications have been received under the scheme and 311 payments made totalling €4.7 million. All commitments entered into under the young farmers installation scheme up to and including 14 October 2008, budget day, will be honoured by my Department.

On the specific point raised by the Deputy, the scheme includes a wide range of educational certificates available to determine eligibility. An applicant has two years from date of set up to complete the agricultural experience and training requirements of the scheme. It is recognised that it may take some time to be presented with the actual certificate from the awarding body. In such cases, Teagasc or the awarding body can confirm achievement of the award thus ensuring the applicant can be paid. The young farmers installation scheme is fairly broad in the number of awards that it recognises towards eligibility.

I also emphasise that a number of farm tax measures were renewed in budget 2009. These are part of a number of schemes and reliefs that have been put in place in recent years to bring about improvements in land mobility that will, in turn, improve productivity and efficiency, particularly for young farmers.

These reliefs include the renewal of stamp duty relief for four years until 31 December 2012, worth an estimated €53 million in a full year; the renewal of stamp duty relief for farm consolidation for two years from 1 July 2009 to 31 June 2011; the renewal of both the general and the young trained farmers rates of stock relief for a further two years, estimated cost to the Exchequer of €2 million in a full year; and the extension of the accelerated capital allowance for necessary farm pollution control facilities from 31 December 2008 to the 31 December 2010, worth an estimated €10 million in a full year.

When combined these farm tax measures are estimated to be worth over €65 million in a full year. In addition, the top rate of stamp duty on agricultural land transactions is being reduced with effect from 15 October. This should reduce the cost of agricultural land to purchasers and encourage a higher number of transactions. All these measures will help young farmers to improve land mobility, increase land swaps and attain higher environmental standards.

I want to confirm to the Deputy that payments under the scheme will be made to an applicant who has met the education and training requirements provided that the other criteria of the scheme are met.

Ar deireadh, má tá litir nó eolas ag an dTeachta Ferris maidir le cás nó cásanna faoi leith, gheobhaidh mé freagra dó, má thugann sé an t-eolas sin dom. I wish to be of assistance and if there are specific details which I did not have when the matter was tabled, I would like to get them in order that I can give the Deputy a more detailed reply.