Andrew Doyle (Wicklow, Fine Gael)
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Question 7: To ask the Minister for Agriculture; Fisheries and Food if the four year plan provides for new entrants to the agri-environment options scheme in 2011 and beyond; and if he will make a statement on the matter. [45523/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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A total of 9,236 applications were received by my Department under the agri-environment options scheme, AEOS, by the closing date of 17 May 2010. All of these applications have been recorded and examined by my Department. To date 5,706 applications have been found to be fully compliant with scheme requirements and the applicants have received notification from the Department approving their participation in the scheme.

A further 2,585 applications have been processed and my Department will be issuing the letters of approval over the next few days. In a number of cases, approval for entry into the scheme will be conditional on minor queries and obvious errors being resolved by the applicant. This will bring the total numbers approved by the beginning of December to 8,291. There are 921 applications which require more detailed investigation by my Department, some of which will have to be resolved in correspondence with the applicants before approvals can issue. The Department is working through these applications with a view to reaching a decision on entry into the scheme in each case as soon as possible. The remaining 24 applicants have withdrawn their applications. Further participation in the new agri-environment options scheme will have to be determined within the limits of the level of funding which will be available to my Department.

The Government's for year plan which was published last week sets out the expenditure ceilings for my Department for the period 2011-14. The plan does not specify the programmes or schemes to which the funding will be allocated. However, it confirms that there will be a focus on streamlining a range of programmes and that options to be considered include the prioritisation of financial support to active farmers. At this stage, no decisions have been taken about the levels of participation in various schemes during the period of the four year plan or on the payment rates that will apply. The 2011 budget will be announced by the Minister for Finance next week and, in that context, I will be giving careful consideration to the allocations of resources against the competing demands in 2011.

Substantial funding is already committed by my Department to funding agri-environment schemes, including AEOS. Total payments last year in respect of REPS 3 and REPS 4 amounted to €341 million. Total funding available this year is €330 million, to provide for payments under REPS 3, REPS 4 and AEOS. Payments in respect of REPS 3 are issuing on a continuous basis and I have urged all participants in the scheme to submit their annual claims as quickly as possible to ensure that they receive payment before year end. The administrative checks and SPS cross-checks which are required before REPS 4 payments for the 2010 scheme can issue are at an advanced stage and I expect that payments will commence in the next week or so. The Department has been concentrating on processing all applications received under AEOS and once this process is complete, arrangements will be put in place to commence payments.

Andrew Doyle (Wicklow, Fine Gael)
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I thank the Minister for his reply. Am I correct that the Minister said €330 million is available to pay REPS 3, REPS 4 and AEOS in 2010?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Yes.

Andrew Doyle (Wicklow, Fine Gael)
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Is it the case, in light of the number of people who will exit REPS 3 during the course of 2011-12 that this burden will reduce significantly if no other scheme is put in place? I cannot urge strongly enough upon the Minister the necessity to provide some form of other scheme. I acknowledge that REPS was never intended to be an income stream per se but REPS has been used as income support by people in Donegal and the west involved in destocking.

The number of people exiting REPS 3 will result in a significant lower burden in 2011. It is important that some option is available to those people in 2011-12 and into the future.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Approximately 10,000 farmers - I say this without having checked the figures recently - will exit REPS 3 between now and the middle of next May, which is equivalent to the number of people who joined the new AEOS scheme on 17 May last. The original allocation for the REPS schemes in 2009 was €330 million. With reallocation from other subheads I was able to pay out €341 million. The figure of €330 million is adequate to meet requirements this year. I have asked those people involved in REPS 3 to return their annual claims so as to enable us turn around payments quickly. I am at this stage trying to encourage people to get back to us so that we can maximise payments this year.

With regard to the total funding available to the Department next year, that figure has not yet been finalised in the context of the forthcoming budget and so on. I accept Deputy Doyle's point, which was previously made to me by Deputy Sherlock. The AEOS scheme has been successful and a number of farmers now exiting REPS 3 or who will do so in the early part of next year are interested in joining a follow up scheme. Decisions have not yet been made in regard to possible admission to the AEOS scheme. That will not be finalised for some time.

Andrew Doyle (Wicklow, Fine Gael)
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The capital expenditure programme, which I accept is different, has identified that spending next year in the Department of Agriculture, Fisheries and Food will be down from €104 million to €89 million. Annex A of the four year plan states that savings in the first year for that Department will be €75 million. Am I correct in saying that this will encompass all schemes or does that figure relate only to general savings?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Capital expenditure for next year will be of the order of €329 million. I do not know from where Deputy Doyle got the figure of €100 million. The four year plan states that €75 million in savings is to be achieved in 2011. This will be achieved under a number of subheads. An area in respect of which we have made substantial savings in the past 18 months is administration, in particular the rationalisation programme in regard to offices. These savings have been devoted to farm programmes. Some of the savings made last year on the administrative budget may have gone into the REPS subhead and farm waste management scheme. Savings of €75 million are be achieved under the 2011 budget in comparison with the 2010 budget.