Michael Kennedy (Dublin North, Fianna Fail)
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I understand that Deputy Deenihan wishes to share his time with Deputy Feighan. Is that agreed? Agreed.

Jimmy Deenihan (Kerry North, Fine Gael)
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The disadvantaged area payment scheme is worth approximately €18.2 million to 7,343 farmers in County Kerry in 2009. However, a number of farmers are still awaiting payment as no cheques have been issued since 13 November. To many farmers this is the only income they will get before Christmas. This year has been disastrous for the farming community. According to CSO figures, the value of milk output fell by almost 35% or €567 million, due mainly to a decrease in prices. For example, the price of a litre of milk in Kerry was 40 cent in 2007, but it has now fallen to about 24 cent, which is still better than other counties. The cattle output value was also down by 10.7%. Coming on top of the income drop of 11% in 2008, this represents the worst income crisis for the sector since Ireland joined the EEC in 1973.

The collapse is due to poor commodity prices, Government cuts, the continuing weakness of sterling and the dreadful weather conditions experienced during the year. Government cuts in vital schemes totalling €130 million have impacted severely on farm incomes. Also, the Government carbon tax will further increase farm production costs by almost €17.5 million per year, which represents a further 1% cut in farm incomes.

The Minister has signalled that €25 million per annum would be found by cutting the disadvantaged area payment scheme by an estimated 11.5% from 2010. This is in addition to a cut of €34 million in the October 2008 budget. This was done by reducing the maximum area limit to 34 hectares or 84 acres. Farmers in County Kerry were particularly affected by this cut.

Due to the disastrous year for Kerry farmers and Irish farmers in general, it is vital that all outstanding payments be sent out before Christmas to help farmers to get over this expensive period.

Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Why are disadvantaged area payments, which were approved last November, not being paid? The Department of Agriculture, Fisheries and Food is telling farmers that it does not have money to pay them. The Minister should order these payments to be made immediately, as these people are depending on them for Christmas. Will he make an urgent statement on the matter? Farming seems to have been forgotten in all the debates on the budget. Farming families have taken a 43% cut over the past two years. Either there is money in the kitty or the Minister's staff are telling these people lies. That word is not supposed to be used, but farmers are discouraged and upset. They are being told there is no money in the kitty and that the payments will not be made before Christmas. I urge the Minister to ensure that these hard pressed farm families receive what they deserve. The Minister promised they would be paid and I want to ensure that will happen immediately.

Tony Killeen (Clare, Fianna Fail)
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Gabhaim buíochas leis na Teachtaí as ucht deis a thabhairt dom freagraí a thabhairt ar an ceisteanna tábhachtacha seo.

Payments under the 2009 disadvantaged areas scheme commenced on 22 September 2009. To date, the Department has made payments worth in excess of €220 million to over 97,000 scheme beneficiaries, representing over 96% of eligible applicants. In addition, the necessary savings required to increase the level of total payments above the original allocation of €220 million have now been identified within the Department's budget. The necessary sanction has been obtained from the Department of Finance and I expect that additional payments in the region of €3 million will issue this week.

These additional payments, which will bring total payments above the original €220 million provision, reflect the fact that payments made in any given year include those in respect of a proportion of applications carried over from previous years.

In addition to payments under the disadvantaged areas scheme, payments under other schemes have continued in recent months at an unprecedented level. For example, payments under the single payment scheme, worth almost €1.25 billion, have issued to some 123,000 farmers since 16 October. The advance payments began a full six weeks earlier than provided for under the rules of the scheme and the level of advance payment, at 70%, is unprecedented. This reflects the pressure brought to bear on the European Commission by the Minister, Deputy Brendan Smith, in recognition of the difficulties being experienced by farmers with low commodity prices and poor weather during the summer months. The advance payments at the 70% rate provided a valuable cash flow benefit for Irish farmers.

The efficiency of the payment systems operated by the Department compares favourably with even the most efficient systems operated by other member states. It is well worth recording the fact that the Department's record in issuing payments under both the disadvantaged areas scheme and the single payment scheme are second to none in the EU.

We have achieved an unprecedented 99% level of payments so far and, this year in particular, the timing and level of payments have made a major contribution to farm family incomes at a difficult time.

In addition to these two major schemes, which between them will result in payments worth almost €1.5 billion this year to almost 120,000 Irish farmers, I am pleased to confirm to the House that payments under the new 2009 upland sheep payment commenced this week, with in excess of €4.7 million having already issued. In addition, payments under the emergency damaged fodder aid scheme, targeted specifically at those farmers most seriously affected by the widespread flooding, will also begin to issue this week.

The Department is also continuing to make REPS payments and, following the supplementary Estimate approved by the Dáil last week, I expect that we will pay up to €369 million under REPS this year, which is one of the largest amounts ever paid in any given year.

I want to assure the House that the Government and I acknowledge the value of these schemes to Irish farmers, as evidenced by the decisions taken in last week's budget to protect funding for them in 2010. I am entirely satisfied that the level and efficiency of payments made under the various schemes by the Department in recent months has played, and will continue to play, an important role in providing a vital boost to the economic activity of rural areas.

Jimmy Deenihan (Kerry North, Fine Gael)
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Is the Minister of State giving a commitment?

Michael Kennedy (Dublin North, Fianna Fail)
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I am sorry Deputy.

Jimmy Deenihan (Kerry North, Fine Gael)
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We can ask a question.

Michael Kennedy (Dublin North, Fianna Fail)
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No, you cannot. Not here. I am sorry.

Jimmy Deenihan (Kerry North, Fine Gael)
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Is the Minister of State giving a commitment that outstanding payments will be paid?

Michael Kennedy (Dublin North, Fianna Fail)
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I am moving on to the next item.

Jimmy Deenihan (Kerry North, Fine Gael)
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Is money available for that?

Michael Kennedy (Dublin North, Fianna Fail)
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I am sorry Deputy, but there is no facility for answering questions.