Dáil debates

Wednesday, 11 February 2009

1:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Question 69: To ask the Minister for Agriculture, Fisheries and Food if he will confirm the level of payment expected to be made available under the suckler cow welfare scheme in 2009 and 2010; and if he will make a statement on the matter. [5031/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I expect to be able shortly to confirm the position regarding payments under the suckler welfare scheme. More than 53,000 farmers applied for the scheme in 2008 and the estimated cost, at a rate of €80 per cow, will be some €77 million for 2008. By the end of 2008, €33 million was spent on the scheme. A further €44 million has been provided in my Department's Estimate for 2009 to pay for the remaining 2008 born calves. Of this €44 million, more than €12 million has been paid out to farmers already in January and payments are continuing on a weekly basis as additional animals become eligible. It must be borne in mind that the money paid to farmers under this scheme is an additional income stream that was not there before last year and that all of this money is coming from the Exchequer.

Photo of Tom SheahanTom Sheahan (Kerry South, Fine Gael)
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I will be as direct and as straight as I can be to assist the Minister. This was introduced at €80 per head and was then reduced to €40 per head. Will the Minister make a statement to the farmers and the nation to categorically dispel the existing rumour that this scheme will be abolished?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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This scheme was introduced with funding of €250 million to be provided over five years. In the first year of applications there was a very large take up and the total cost of the 2008 scheme amounts to €77 million. A sum of €33 million was provided in the Estimates for 2008 and this scheme, by its nature, is claimed for only towards the end of the year with calves weaning. Some €33 million was spent in 2008 and the remaining €44 million due for the 2008 scheme will be paid. A total of €12 million has been paid since 1 January and payments continue. No decision has been made on the rate of payment that would apply to this scheme for 2009.

Photo of Tom SheahanTom Sheahan (Kerry South, Fine Gael)
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Will the Minister give assurances that this scheme will be in place for the next five years?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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This scheme was introduced last year——

Photo of Tom SheahanTom Sheahan (Kerry South, Fine Gael)
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It is a "yes" or "no" answer.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I indicated that the €250 million provided for the scheme was not €80 per animal. It was introduced at the beginning on the basis that there would be €250 million over five years. The intention is to honour that scheme.

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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The Minister said 53,000 farmers applied, but the relevant figure is how many animals were applied for. The calculation was on the basis that one would need €77 million for a year, yet only €44 million was paid out in 2008, because there were animals that carry over. Is it correct that €44 million is still due on the 2008 applications? When the five years are up there will be animals that will not be claimed for until the year after the scheme closes. Is the Minister prepared to re-evaluate the amount of money up from €40 if the number of animals claimed for is smaller? If the €40 is paid out in years two, three and four, will he save the money and continue to pay €40 or does he intend to revise the figure, if possible, upwards?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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As Deputy Doyle rightly said, the number of applications was almost 54,000 and the number of beef breed calves born in the scheme last year was 974,000. The funding paid out under the 2008 scheme during the calendar year 2008 was €33 million and €44 million is provided in the 2009 Estimate to pay the remainder of the 2008 scheme. Many of the applications would come in only at the end of the year and there would be that carry-over into 2009 but the payment is in respect of the 2008 scheme.

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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The question was whether the Minister will revise the figure upwards.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I very much doubt that because the demand on the scheme will be sufficient to draw down the funding available.

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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A number of complaints and requests have been sent to the Wexford office and information has circulated from that office to the local and district Department of Agriculture, Fisheries and Food offices. They have been told in typical Departmental speak, vague and meaningless, how to answer those questions. This is nothing more than a delaying tactic. Has the Minister seen this and verified that it should go out? This is regarding payments to farmers of overdue payments.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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On the suckler cow scheme?

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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No, REPS and other payments.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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We dealt with the REPS payments. I do not know if the Deputy was in at the time.

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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That was a priority question.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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This question deals with suckler cow payments.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The suckler cow payments are processed from the Portlaoise office of the Department and I am not aware of people awaiting payments. In many instances the Department has been back to individual farmers clarifying aspects of the applications that were deficient, or whatever. The payments are issuing rapidly. If there is a query about a particular applicant we will check it out.

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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On a point of information, these notices came from the Department to all local offices.