Joan Burton (Dublin West, Labour)
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Question 6: To ask the Minister for Agriculture; Fisheries and Food the cost of delivering the agricultural environment options scheme in 2010; and if he will make a statement on the matter. [40645/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The agri-environment options scheme was launched in March this year with a closing date for applications of 17 May 2010. In all, 9,236 applications were received by the closing date. The processing of applications is well advanced at this stage and letters of approval for participation in the scheme have issued to almost 6,000 applicants or almost two-thirds of all applicants. The process is continuing and my objective is to ensure that the examination of all remaining applications is completed as quickly as possible with a view to early decisions on entry into the scheme. My Department will be in contact with the applicants concerned in the near future.

Based on the numbers of applications processed to date, the Department estimates that the average payment to participating farmers will be almost €4,000 per annum and that the total full year cost of commitments under the scheme will be in excess of €34 million. The EU regulations governing area-based schemes provide that payments issue in two instalments. The first instalment of 75% may be paid once all administrative checks on all applications, as well as cross-checks against areas declared on single payment scheme applications, have been completed. Once the approval process has been completed, my Department will direct its attention to issuing first instalment payments as soon as possible. The balancing payment of 25% can issue once all on-the-spot inspections for the year have taken place.

Scheme delivery in 2010 involves the examination, recording and processing to approval stage of a large number of applications and including the cost of developing an IT system for the ongoing and future implementation of the scheme. An accurate estimate of the cost of delivering the scheme will be difficult to compile due to the numbers of staff involved who are also engaged on other work. In any event, an estimate cannot be completed until all valid applications, including on-farm inspections, have been processed to payment stage. My intention, at all times, is to implement schemes as efficiently as possible.

Seán Sherlock (Cork East, Labour)
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The Minister mentioned that the average payment per person will be €4,000 per annum, which is below the €5,000 maximum. To what does he attribute this figure?

What is the up to date position regarding those who are leaving REPS 3? Will they be accommodated under the AEOS next year?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The average payment of €4,000 is based on the number of applications processed to date. Approximately two thirds have been processed and, therefore, the payment may vary. People had a menu of options for participation in the scheme. Some people opted to participate under different measures and it was up to the individual to decide which measures he or she wished to participate in. The initial take-up for a scheme is usually not good and people are not as good at maximising the opportunities provided by a new scheme. When people become more familiar with the scheme, they will have the opportunity to draw down the maximum payment. With regard to those who will exit REPS 3 between now and 17 May 2011, in the budget last year the Minister for Finance gave us permission to launch the new agri-environment options scheme, with a budget of €50 million per annum over five years, with a maximum participation of 10,000 farmers. We had in excess of 9,200 applications and it will be possible to accommodate all who meet the criteria of the scheme. Those who might wish to join the scheme in the future will be a matter for the Estimates and the budgetary process, as is usual.

Seán Sherlock (Cork East, Labour)
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Speaking of the Estimates, is the Minister confident he can secure the €50 million next year, or more, depending on the demand for the scheme?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Those who have entered the scheme are in it for five years so funding is ring-fenced for them. No Department's Estimate is finalised yet. I do not know what allocation the Department will have, it is an issue that is up for consideration.

Andrew Doyle (Wicklow, Fine Gael)
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A sum of €34 million, with an average of €4,000, would anticipate a figure of 8,500 farmers qualifying of the 9,200 applicants. It leaves no more than €16 million for the rest of the five year period or is that €16 million for more people to come into the scheme during the five years?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Last year, provision was made in the budget by the Minister for Finance for the new agri-environment options scheme that was to be launched in early 2010. It was decided that provision would be made to allow 10,000 people to participate at a maximum payment of €5,000, a provision of €50,000 per year. Once a person joins the scheme, he is guaranteed access to it for five years. It is a commitment of €250 million in fact for those entrants of 17 May 2010. Other people who may wish to join the scheme will have to await the outcome of the Estimates process.