Michael Creed (Cork North West, Fine Gael)
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Question 4: To ask the Minister for Agriculture, Fisheries and Food his views on whether the future of the agricultural sector is under threat in some areas of the country, particularly those designated as areas of disadvantage; and if he will make a statement on the matter. [37775/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The 2009 Estimates provide over €1.8 billion for the Department of Agriculture, Fisheries and Food and, when combined with EU funding of €1.4 billion, that means that total expenditure in 2009 by the Department will amount to over €3.2 billion.

While difficult decisions had to be taken in light of the situation of the public finances, account also had to be taken of the very high level of investment by the Government in recent years, when significant additional financial resources were committed to areas such as the rural environment scheme, where the rates of grant had been increased by 17% cent, the new suckler cow welfare scheme, the farm waste management scheme, and the 8% increase in rates under the disadvantaged areas scheme introduced last year.

With regard to the 2009 disadvantaged areas scheme, I decided to reduce expenditure for 2009 by reducing the maximum area limit to 34 hectares, which approximates to 84 acres, and by a small increase in the minimum stocking density requirement. While overall expenditure will fall, almost 67,000 farmers will not suffer any reduction in their payments as a result of the introduction of the 34 hectare limit. Furthermore, these farmers, as well as all claimants under the scheme, will continue to benefit from the substantial increase of 8% in the rate of aid introduced by the Government in 2007. In addition, of the 102,500 farmers who benefit under the disadvantaged areas scheme, in excess of 50,000 of these also benefit under the rural environment protection scheme, REPS, while in excess of 47,000 also benefit under the suckler welfare scheme, which introduces a new stream of payments to farmers this year. It should also be taken into account that in addition to the payments under these schemes, a further €920 million was paid to farmers with disadvantaged area lands under the 2007 single payment scheme. The total amount payable of €220 million to farmers under the disadvantaged areas scheme is part of the overall substantial injection of funds paid to farmers situated in the areas, and the scheme continues to be one of the best well funded disadvantaged areas schemes in the European Union.

Notwithstanding the difficulties in the public finances and the decisions I have taken against that background, the position is that in excess of €3.2 billion will be spent next year by the Department in support of agriculture, fisheries and food. It is important to get through this challenging period and continue towards achieving the full potential of our most important indigenous industry when the economy begins to grow again.

Michael Creed (Cork North West, Fine Gael)
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In light of what has happened in this House and outside it since budget day, will the Minister accept the budget is, in effect, merely a discussion document? The Minister for Finance was able to do a U-turn on the 1% levy. The Minister for Social and Family Affairs was able to do a U-turn today on the issue of entitlement to disability benefit for 16 year olds. We have had the U-turn on the medical card issue.

Is the Minister in a position to go to his Cabinet colleagues and deliver a better deal on this discussion document than his predecessors? This morning in Buswells Hotel, the Minister of State with responsibility for older people, God love her, Deputy Hoctor, asked the ICSA to give her the list of issues and she could arrange, through the Minister's good offices, for those to be dealt with and reconsidered.

In respect of disadvantaged area payments, the Minister is hitting the most vulnerable people who are farming the most marginal land. That payment was introduced for the specific purpose of maintaining the link between farmers in difficult disadvantaged areas and ensuring they could remain in farming. How can the Minister justify hitting the most vulnerable people in farming and taking €1,000 on average out of every one of those farmer's pockets? Will he go back to his Cabinet colleagues on this specific issue for those farmers who are the most marginalised and who are taking a bigger hit than any other sector in the economy in terms of the suckler cow scheme, the early retirement scheme, installation aid, and the disadvantaged areas scheme? We are talking about disadvantaged farmers. Will the Minister go to his Cabinet colleagues and tell them he also made a mistake, and that he will revisit this decision?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I dismiss Deputy Creed's suggestion that the budget is a discussion document.

Michael Creed (Cork North West, Fine Gael)
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They are all doing U-turns.

Brendan Howlin (Wexford, Labour)
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The Minister, without interruption.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Creed might listen for a change. He misquoted Deputy Máire Hoctor, the Minister of State at the Department of Health and Children. The Minister of State did not say any such thing at the meeting with the ICSA.

Michael Creed (Cork North West, Fine Gael)
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The Minister was not there.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I checked it with the Minister of State and she gave me the accurate report. She outlined clearly to a spokesperson for the ICSA that of all the contributions she had heard in the room, nobody had suggested alternatives in terms of how funding could be transferred from one subhead to another. The Minister of State, Deputy Hoctor, has been misrepresented, as the Deputy has done just now. She said no such thing.

Michael Creed (Cork North West, Fine Gael)
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Is the Minister prepared to reconsider this issue?

Brendan Howlin (Wexford, Labour)
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Allow the Minister to answer the question, Deputy.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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When somebody is misrepresented in the House, I want to correct it. I stated here that we had to make difficult decisions. This Department did not take a bigger hit than any other Department.

Michael Creed (Cork North West, Fine Gael)
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Look at the figures.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The reality is not what the Deputy tried to portray. If one takes into account a Supplementary Estimate on the capital side that was extremely high — €195 million——

Michael Creed (Cork North West, Fine Gael)
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Does the Minister have enough for next year?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Yes, I have enough.

Michael Creed (Cork North West, Fine Gael)
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We will see. Are you saying you will not be coming back with a Supplementary Estimate?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Creed issued a statement in August to the effect that nobody would be paid from thence on.

Michael Creed (Cork North West, Fine Gael)
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As a result you got up off your backside and introduced a Supplementary Estimate.

Brendan Howlin (Wexford, Labour)
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Please allow the Minister to answer the question. Supplementary questions should be put through the chair.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The reality is that in the coming year the following payments will be made to farmers: the single payment scheme, €1,300 million; REPS, €355 million; disadvantaged areas scheme, €220 million; and suckler cow welfare scheme, €44 million. A total of €33 million is being paid out under the suckler cow welfare scheme, which will be paid later this year. That is a new payment.

Michael Creed (Cork North West, Fine Gael)
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Some €40 per cow next year.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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No. Deputy Creed is misrepresenting the situation again. He is obviously not prepared to listen and hear the facts. We had to reallocate some expenditure. I decided reluctantly to reduce the expenditure on the disadvantaged areas scheme. I have already outlined that the vast majority of people in the disadvantaged areas scheme will not have their payment affected. It is people with hectarage above 34 hectares who will be affected. Everybody will be paid up to the rate of 34 hectares.

I want to give the Deputy some facts. The total area that will not be payable under the new limit is 204,000 hectares in the cases of more severely and less severely disadvantaged lands, while the area reduced in the case of mountain type grazing is 102 hectares. There was some misrepresentation that that latter category with the biggest hectarage would be affected. That is not correct.

Michael Creed (Cork North West, Fine Gael)
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Where stands the commitment of the Minister, his Department and the Government to social partnership? These were schemes signed off in good faith less than 12 months ago, in respect of the sucker cow welfare scheme, when the Minister had or should have had full knowledge of the budgetary situation, if he was not asleep at the wheel. What about the commitment to an €80 payment per suckler cow and €90 next year? Where stands social partnership, which made arrangements recently for the disadvantaged area payments?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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This year, as last year, an 8% increase was paid by the Department under the disadvantaged areas scheme. Deputy Creed refers to the suckler cow welfare scheme. It was agreed in the partnership agreement, Towards 2016, that a five year, €250 million suckler cow scheme would be introduced. That commitment will be honoured and no amount of misrepresentation by the Deputy——

Michael Creed (Cork North West, Fine Gael)
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Some €80 per cow. Deferred payments in 2009——

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Creed does not want to listen to the facts. The Government gave a commitment and no misrepresentation on the part of the Deputy or others will deflect attention from the fact that it is honouring that commitment, which relates to the payment of €250 million through a new five-year suckler cow scheme. The commitment will be honoured.

Michael Creed (Cork North West, Fine Gael)
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Will the Minister, like his Government colleagues, do a U-turn and revisit the disadvantaged areas scheme?