Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 8: To ask the Minister for Agriculture, Fisheries and Food the amount by which he intends to cut the disadvantaged area payment; if this will be on a once off basis; and if he will make a statement on the matter. [37550/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My approach in preparing the 2009 Estimates for my Department was to focus available resources on the measures that allow us to maintain and grow the productive capacity of the agri-food sector. 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 protection scheme, REPS, where the rates of grant had been increased by 17%, the new suckler cow welfare scheme, the farm waste management scheme and the 8% increase in rates under the disadvantaged areas scheme, which has been paid in 2008 and was introduced in 2007.

I decided to reduce expenditure on the disadvantaged areas scheme for 2009 by reducing the maximum area limit to 84 acres, 34 hectares, 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. 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. Of the 102,500 farmers who benefit under the disadvantaged areas scheme, in excess of 50,000 of these also benefit under REPS, while in excess of 47,000 also benefit under the suckler welfare scheme, which introduces a new stream of payments to farmers in 2008. 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 of €220 million payable to farmers under the disadvantaged areas scheme is part of the overall substantial injection of funds paid to farmers situated in those areas. The scheme continues to be one of the best-funded disadvantaged areas schemes in the European Union.

Notwithstanding the difficulties in the public finances and the decisions I have taken against that background, more than €3.2 billion will be spent next year by my 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 as economic conditions improve.

Tom Sheahan (Kerry South, Fine Gael)
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What 8% increase in disadvantaged area payments is the Minister talking about when all the farming bodies have been informed that the average farmer in a disadvantaged area will lose €1,055?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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What I stated to the House — I may have stated it twice — is that in 2007 the rate of payment was increased by 8%, and that rate of payment was continued in 2008. Obviously, that payment is continuing for all eligible applicants in next year's scheme. That 8% increase in payment is being continued. As the Deputy is aware, there is now a cut-off point of 34 hectares for payments, which was introduced due to budgetary constraints. The disadvantaged and severely handicapped areas are familiar to me. I am fully aware of the type of farming carried on there, the difficult terrain and so forth. This was one decision I was very reluctant to take but if I did not reduce expenditure in this area, some other worthy scheme would have had to suffer.

Tom Sheahan (Kerry South, Fine Gael)
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Does the Minister accept that, whatever way he wishes to camouflage it, he is taking an average of €1,055 from the majority of farmers in my constituency, where so much of the land is heaped up in mountains and hills? The most disadvantaged people are losing an average of €1,055 through the Minister's budgetary measures.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My information indicates that the majority of farmers in County Kerry do not come into the category to which Deputy Sheahan refers.

Tom Sheahan (Kerry South, Fine Gael)
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Does the Minister accept that the average loss will be €1,055?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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No, it is less——

Michael Creed (Cork North West, Fine Gael)
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Is the average loss €905?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Less than 50% of farmers in County Kerry are affected, according to my——

Michael Creed (Cork North West, Fine Gael)
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Those already in the scheme are losing in the region of €1,000.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Nationally, over 60% of farmers are not affected by this scheme because their acreage is under the cut-off point of 34 hectares. The reduction in the maximum area payable from 45 hectares to 35 hectares will result in the payments of 35,162 farmers being reduced, but in excess of 102,000 farmers are in receipt of disadvantaged area payments.

Tom Sheahan (Kerry South, Fine Gael)
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There are 7,412 farmers in Kerry losing an average of €956 under the disadvantaged area payments scheme. How does that equate to an 8% increase?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My understanding is that the total number of farmers in disadvantaged areas in County Kerry is 7,666, over 3,000 of whom will be affected by this particular decision. I can double check those figures for Deputy Sheahan, but I am confident that they are accurate.

Tom Sheahan (Kerry South, Fine Gael)
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Where is the 8% increase?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As I have already said, and this will be the fourth time, that ——

Michael Creed (Cork North West, Fine Gael)
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Eaten bread is eaten bread.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I am just pointing out that over the past number of years there have been increases in different programmes. When resources were available, decisions were made to increase the level of funding towards particular programmes. Deputies may wish to dismiss an 8% increase as insignificant but I would not regard it as so for those in receipt of such payments.