Dáil debates

Tuesday, 6 November 2012

Other Questions

Agriculture Schemes Expenditure

3:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Agriculture, Food and the Marine the amount provided in the estimate for payment under the targeted agricultural modernisation scheme in 2012; the amount paid out under the scheme to date and the expected outturn expenditure under this scheme in 2012; and if he will make a statement on the matter. [48251/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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European Commission approval for the introduction of a number of targeted agricultural modernisation schemes, TAMS, which are designed to support productive on-farm investment in the agricultural sector, was received in March 2010. Priority was given to the bio-energy, poultry welfare and sow welfare schemes, which were launched by my Department during the first half of 2010. The sheep fencing and handling scheme opened for applications on 1 November 2010 while the dairy equipment and rainwater harvesting schemes were introduced in March 2011. All schemes operated on the basis of a series of tranches to ensure that approvals to commence work could be issued regularly to farmers. Where required, a selection process was used where a particular tranche was oversubscribed, and this has occurred particularly under the dairy equipment scheme, in respect of which demand for grant aid has been very significant.

I provided funding of €20 million in the Department's capital envelope to meet expenditure under the various TAMS in 2012. Almost €12 million has been paid out to date. Expenditure is demand led and dependent on approved projects being completed and valid, and with documented claims being submitted by the farmers concerned. As farmers have two years under their grant approvals to complete the investment works concerned, it is not always possible to determine the calendar year in which the expenditure will arise. In those circumstances, actual expenditure in any one year is outside the control of the Department, but I expect that TAMS expenditure for this year as a whole will be of the order of €15 million.

Additional information not given on the floor of the House.

In anticipation of savings arising under the TAMS allocation for 2012, I have arranged for transfers of funding to other capital expenditure headings where additional funding is required, in particular to meet liabilities arising under the farm improvement scheme and the pre-TAMS sow welfare schemes. As a result, I expect that the overall savings in this general area are likely to be relatively modest.

I am especially conscious of the importance of TAMS as a vehicle for investment in on-farm enterprises to improve commercial viability and also to assist farmers to meet the new EU animal welfare requirements in regard to the poultry and pig sectors. To this end, I regularly review progress in regard to the level of demand and the allocation of funding under the various schemes to make best possible use of the resources available. Last week, I decided to extend the deadline for the submission of applications under the TAMS sow welfare scheme from the end of October 2012 to the end of January 2013 to help those farmers who have not yet been able to lodge valid applications under that scheme. The deadline for completion of work under the TAMS poultry welfare scheme was also extended by my Department until 28 September 2012. Over two thirds of the TAMS expenditure this year has taken place under this particular scheme.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Minister's civil servants seem very focused on answering all sorts of questions I did not ask, thereby wasting time. I did not ask for a description of the TAM scheme or when it was introduced. What I asked was very simple, namely, the amount of money provided in 2012, the amount paid out to date, which the Minister told me eventually, and the expected expenditure under the scheme, which the Minister also told me eventually. If I wanted a full description of the scheme, I would table a question to that effect.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Deputy got his answer.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I did, but the Minister wasted a lot of time telling me what I already knew, namely, the background to the scheme. It is not the first time today that I got a long answer in which the Minister could not get to the meat of the question I tabled. The first answer was a case in point.

Why, according to the Minister's figures, will only 75% of the money be spent? Why is the demand so low and why are payments so slow? How many applications has the Department received? Will they all be cleared by Christmas?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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In anticipation of the savings arising from the TAMS allocation in 2012, I have arranged for the transfer of funding under other capital expenditure headings where additional funding is required, in particular to meet liabilities arising under the farm improvement scheme and the pre-TAMS sow welfare schemes. As a result, I expect the overall savings in this general area to be very modest.

We have approved increased expenditure under particular programmes, including the sow welfare schemes. In January next year, the tethering of sows will no longer be acceptable, which means breeding sows will have to be kept in loose housing arrangements. Significant investment is needed to meet that requirement and we are under pressure in this regard. For this reason, I have extended the targeted agricultural modernisation scheme in this area by providing additional funding and extending the deadline. This will ensure that as many pig farmers as possible qualify by the deadline of next January.

3:10 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I assume the Department is aware of the number of approvals it has issued under the TAM scheme. How many of these will now carry over for payment into next year? In other words, in cases where the work has not yet been done and the farmer has not yet made the claim, what is the amount of approvals in value terms that will have to be paid out in 2013?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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We made €20 million available this year for the scheme, €15 million of which will have been spent before the end of December. I do not have the exact figure in terms of carryover into next year, but I will find that information for the Deputy. The reality, however, is that we do not know whether farmers will spend it next year. They have two years in which to do so and some may wait until the following year. The Deputy is seeking figures that are a moveable feast and will depend on when farmers decide to make the capital investment. The sow welfare aspect is different because farmers have a deadline with which they must comply. In the dairy area, however, farmers are planning investments in the build-up to the removal of quotas in April 2015 and they have two years to spend the money. We must have the flexibility in place to accommodate that.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Will the Minister get back to me with an answer on the amount of approvals on hand for which claims have not yet been received? He is quite right regarding the two-year timeframe. He forgot, however, to mention a third aspect, namely, that under every grant scheme ever created, there will be people who get approval but who, for one reason or another, never do the work and thus never claim the full grant. If I have the figure for the total amount of money approved that has not yet been claimed, I will be able to do the extrapolation myself.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I will try to get that information to the Deputy.