Michael Creed (Cork North West, Fine Gael)
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Question 62: To ask the Minister for Agriculture, Fisheries and Food if, in the context of the suspension of the early retirement scheme and the young farmers installation aid scheme, he proposes to make concessions to would-be applicants under those schemes who have entered into legally binding and irrevocable commitments arising from their clear intention to submit valid applications under both of those schemes; and if he will make a statement on the matter. [44381/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The 2009 budget was prepared against the background of a serious deterioration in the national finances. The limited resources available meant that difficult choices had to be made between competing demands.

My priority 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 agrifood sector. The 2009 Estimates provide over €1.8 billion for my Department and, when combined with EU funding of €1.4 billion, that means total expenditure in 2009 by my Department will amount to more than €3.2 billion.

In regard to the early retirement scheme and the young farmers installation aid scheme, all fully completed applications received by the Department up to and including 14 October 2008 will be processed and, if they are in order, payment will be made. An allocation of €56.7 million has been made for 2009 to meet current commitments under the scheme of early retirement from farming and the young farmers installation aid scheme, but, for the present, it has been necessary to suspend new applications for those schemes.

While difficult decisions had to be taken in light of the public finances, account also had to be taken of the 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, where the rates of grant had been increased by 17%, the new suckler cow welfare scheme, the farm waste management scheme and an 8% increase in rates under the disadvantaged areas scheme introduced in 2007.

I have no plans at present to re-open the young farmers installation aid scheme and the early retirement scheme to new applications, but the limiting of the suspension of the scheme will be considered at the earliest opportunity having regard to the general budgetary situation.

Michael Creed (Cork North West, Fine Gael)
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I have no interest in having a dialogue of the deaf with the Minister. We must try to make progress on the issue. I would like if the Minister would agree to open the scheme immediately. I have no doubt that if the times were better financially the Minister would agree to do that, but there is a category of people in respect of both the installation aid scheme and the early retirement scheme who have entered into legally irrevocable contracts and who, through no fault of their own, are now in a difficult situation. We would all like to see the scheme re-open for everybody, but in those exceptional circumstances will the Department look favourably on those individual would-be applicants?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I indicated to Deputy Creed previously when we met to discuss those issues and in reply to a previous parliamentary question that people whose applications were significantly progressed at the time entry to the schemes were suspended are a priority for me and will be a priority when we start processing and revisiting that decision. That is a view shared by all of us who represent rural areas and who are familiar with individuals and families who had started the preparatory work but who had not completed or lodged their applications with the Department prior to budget day. I am aware from public representatives such as from the Members present and other colleagues on both sides of the House, and from the farming organisations, all of whom spoke to me about the matter, that a number of applications now stand suspended that were almost ready on budget day.

I have stated repeatedly in the House and in response to councillors, representatives of various farming organisations and in the media that it is my intention to revisit my decision to suspend entry to the schemes as soon as circumstances permit. All of us who deal with representations from rural communities fully appreciate that a considerable amount of effort goes into the completion of a valid application. In the case of installation aid, young farmers went into considerable detail to meet the specific requirements of the scheme. I understand that at times the delay in lodging applications may have been outside an applicant's power. I am conscious of that but I do not want to mislead anybody. I am not in a position at this time to say when we will be able to progress those particular applicants who had set out on the road to complete an application. I assure Deputy Creed that those applicants will be the first to have their applications processed when it is possible to re-open the schemes.

Michael Creed (Cork North West, Fine Gael)
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I am disappointed with the Minister's response because I referred to a handful of applicants where there is clear evidence of a delay in probate or the Revenue stamping deeds and leases.

Has the Minister received any legal advice on the vulnerability of the Department to a legal challenge following the suspension of the scheme? It would appear that the principle of legitimate expectation would apply and the Department has been at the receiving end of a judgment in that respect previously.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The scheme was suspended due to budgetary constraints and that remains the position. Adequate provision has been made in the 2009 Estimates to meet all applications that were duly authorised and authenticated that reached the Department by budget day, should they be approved. I hope they all meet the criteria. I accept some people who had started to prepare their applications had gone quite a distance but, from some of the representations received by the Department, a number of the cases brought to my attention were by and large in the early stages. As Deputy Creed indicated, we all know of applications that were nearing completion and I would like to advance them as soon as possible.